I need help with the Cash Budget You are the cost accountant at Posey's Pet Emporium tasked with preparing quarterly budgets that determine the cash effects of the company's sales and production$-$related expenditures. The company uses a calendar year, and it is time to prepare the third$-$quarter budget. You have the following information: $1.$ The budgeted selling price for the year is $ $4\mathrm{.}99$ per unit. Sales volumes are budgeted as follows for the last month of quarter two, for all of quarter three, and for part of quarter four. $2.$ Historically, $20\%$ of Posey's sales are cash sales. Of the remaining credit sales, $45\%$ are collected in the month of sale, while $52\%$ are collected the following month. The remainder is deemed uncollectible. $3.$ Management sets its ending finished goods inventory goal at $15\%$ of the following month's sales volume. The accounting team expects this policy will be met at the beginning of the second quarter. $4.$ The target ending inventory for Posey's primary direct material is $20\%$ of the following month's production needs. Each completed unit requires five pounds of direct materials at an expected cost of $ $0\mathrm{.}25$ per pound. The budgeted production for October is $34,000.5.$ Posey's pays for $40\%$ of its purchase in the month of purchase and $60\%$ the month after purchase. Total budgeted purchases in June are $ $20,000.6.$ Posey's ending cash balance on June $30$ was $ $57,950.7.$ Posey's non$-$production cash disbursements are estimated at $ $80,000$ per month.Posey's Pet Emporium DM Cash Disbursements July August September Quarter A$/$P balance from June$*24,763\mathrm{.}50$ July purchases August purchases September purchases Total DM Cash Disbursements Other Cash Disbursements Total Cash DisbursementsPosey's Pet Emporium Selling price Less: Target gross margin percentage target gross margin should be $50\%$ of the selling prrice Cost of goods sold Less: DM cost per unit Additional cost per unit to cover DL and MOH $2\mathrm{.}50$ You are the cost accountant at Posey's Pet Emporium tasked with preparing quarterly budgets that

determine the cash effects of the company's sales and production$-$related expenditures. The company

uses a calendar year, and it is time to prepare the third$-$quarter budget. You have the following

information:

The budgeted selling price for the year is $$4\mathrm{.}99$ per unit. Sales volumes are budgeted as follows

for the last month of quarter two, for all of quarter three, and for part of quarter four.

Historically, $20\%$ of Posey's sales are cash sales. Of the remaining credit sales, $45\%$ are collected

in the month of sale, while $52\%$ are collected the following month. The remainder is deemed

uncollectible.

Management sets its ending finished goods inventory goal at $15\%$ of the following month's sales

volume. The accounting team expects this policy will be met at the beginning of the second

quarter.

The target ending inventory for Posey's primary direct material is $20\%$ of the following month's

production needs. Each completed unit requires five pounds of direct materials at an expected

cost of $$0\mathrm{.}25$ per pound. The budgeted production for October is $34,000.$

Posey's pays for $40\%$ of its purchases in the month of purchase and $60\%$ the month after

purchase. Total budgeted purchases in June are $$20,000.$

Posey's ending cash balance on June $30$ was $$57,950.$

Posey's non$-$production cash disbursements are estimated at $$80,000$ per month.

$1\mathrm{.}25$

$1\mathrm{.}25$

Posey's Pet Emporium