Hitchen's Widget store Part 2 Using Hitchen's info from the income statement budgets (part 1), the remaining account info is presented to prepare the components of the balance sheet budgets. Assume the same budget is expected for the next three months (July, Aug, Sept). 1. Opening July 1 cash balance is $578,879. 2. A/R beginning balance of $2,133,435 was 66% collected in July and the remaining in August. 3. Sales: 30% collected in month of sale, 50% the following month, and 20% in the third month. 4. A/P opening balance of $297,454 was paid 70% this month and 30% next month. 5. Direct Materials are paid 30% during month of purchase, 50% the following month, and 20% the third month. 6. W/P had an opening balance of $222,786 and paid off this month 7. Direct Labor is paid 73% this month and the remaining in the following month. 8. Factory Overhead & Selling/Admin is paid 100% this month (excluding Depreciation) 9. Dividends are expected to be paid of $179,223, $240,000, and $260,000 in the three months respectively 10. Plans are in place to purchase a piece of equipment for $143,567 in month 1 (10% paid this month, 40% paid in month 2 and the remaining 50% in month 3). a. Retired Asset expected to sell for $11,232 and collected 100% in the second month. 11. 100% of income tax is paid each month 12. Beginning balances: a. Equipment = 2,164,000 b. Accum. Dep. Equipment = 1,256,000 Common Stock = $2,500,000 d. Retained Earnings = $1,114,081 Prepare these following budgets for month one, two and three. 1. Schedule of cash collections from customers 2. Schedule of cash payments for D.M. 3. Schedule of cash payments for D.L. 4. Cash Budget 5. Budgeted balance sheet (as of month 1) Hitchen's Widget Store - Part 2 Cash Collections Sales/opening bal. July Aug. Sept. A/R July Aug. Sept Total cash collections %collected month 1 %collected month 2 %collected month3 A/R collected month 1 A/R collected month 2 Hutchin's Store Budgeted Balance Sheet As of July 31, 20XX Current Assets Cash A/R Finished Goods Inv.