I am stuck on the financing part of the cash budget. If anyone could help it would be much appreciated.

A merchandising company, pru- Inventory purchases budget: pares its manier budget on a quarterly basis. The following data have been assenbled to assist in preparation of the master budget for the second quarter. April May June Total 3. As of March 31 (the end of the prior quarter), the company's balance sheet showed the Budgeted cost of goods sold .... 42,000 51,006 54,000 147,006, following nccount halances! Add: Desired ending inventory ...... +15,300 160,200 9.000 40,5007) Income Cash............ $ 9.000 . Toual needs................ Accounts Recolvable ......... 48.000 Deduct: Opening inventory ....... 57,300 67,200 63,000 0.50 For The Torventory . . .. 12.000 .. Plant and Equiperont (nci).... 214,100 Required purchases .... - 12,000 15,300 1,200 44.100. Accounts Payable ....... S 18.300 Capital Stock ...... 190,000 44,700 51,700 46,800143,20 Less: Cost Retoined Earnings ..... 73,400 $283.700 5283,700 4 Schedule of cash disbursements for purchases: b. Actual sales for Marchand budgeted sales for April-July are as follows: Less: Op March (actual) ...... $60,000 April May June Tatul April ............. 70,000 18,300 For March purchases ...... 18,300 Mny............. B5.000 Juno ............. 90,0000 For April purchases .... ... 22,950 22,350 July 44,700 ..... ...... 50,000 For May purchases ........ For June purchases.......... 10,830 10,850 5), 790 C. Smlos aro 2006 for cash and 10% on credit. All payments on credit sales are collected in Total cash disbursements. 23,400 23.4100 the month Rillowing sale. The accounts receivable at March 31 Are a result of March 40,6050 93,200 34,250 198,100 credit sales. d. The company's gross profili rule is 40% of sales. Operating Expenses Budgeted e. Monthly expenses are budgeted as follows: salaries and wages, $7,500 per month; shin- ping, 6% of sales: advertising. $6,000 per month; depreciation, $2,000 per month; other April May June Total expense, 4% of sales. Salaries & wages 7,500 750 7500 22,500 1. At the end of each month, Inventory is to be on hand equal to 30% of the following Shipping 4.200 5,00 5400 14.700 month's sales needis, stated at cost. Advertising Half of a mooth' inventory purchases are paid for in the month of purchase and half in 6,000 1000 1000 the following month. Depreciation 2,900 2000 2000 100 h. Equipment purchises during the quarter will be as follows: April, $11,500; and May. Other 2.800 3400 3600 3600 $3,000. Total Budgeted Expenses 1. Dividonds totaling $3,500 will he declared and paid in June. 22,500 24,000 24,500 1,000 1. The company must maintain a minimum cash balance of $8,000. An open line of credit is available at a local bank. All borrowing is done at the beginning of a month, and all Schedule of cash disbursements for expenses: repayments are made at the end of a month. Borrowings and repuyments of principal musi be in multiples of $1,000. Interest is paid only at the time of repayment of princi April May June Total The manual interest rate is 12%. (Figure interest on whole months, c.g., Viz, V12.) Salaries and wages ..... 7soo 7500 7500 22,500 Shipping .......... 4200 5100 540014,700 Advertising ......... Prepare Operating budgets for the Master budget: 60000 6000 6000 18000 Other expenses ........ Tolal cash disbursentents .. 2800 3400 3600 9800 1) Sales (revenue) budget 20,500 22000 22,500 69,000 April May June Total Financial budgets 14.00 17,000 18.000 49.000 Cash Sales 56000 66.000 72,000 196,000 Credit Sales Total Sales 70,000 85.000 90000 245,000 1) Cash budget: April May June Total 350 Cash balance, beginning .... Add cash collections .......... 162000 73.000 86,000 2) Schedule of Expected Cash Collections 2) E Ital cash available ..... April May June Total Less disbursements: 40,650 33200 34250 14,000 17,000 18.000 49,000 For inventory purchases .... Cash sales For operating expenses .............20 ASSO Collections on Acct. Rec. 48,066 54,000 68000 172,000 chases .............11,500 3000 For dividends ............ (credit sales) Total disbursements ..... 73000 86,000 221,000 -72,60SO 58,200 16025 Total expected Cash Col62,00 Excess (deficiency) of cash..............(1650) 23150 48900 Financing Borrow Repay Interest 9,000 1600 81,350 .........20, 5002200022 Soo 6 3500 10,000 110.000) ending blance 8350