Just need the cash budget for August (#5).

Smithfield Company manufactures widgets. Smithfield's sales budget shows monthly sales for the upcoming quarter as follows: Each unit sells for $20.00. 80% of sales are on account. Smithfield's collections on sales on account are expected as follows: 65% in the month of the sale 20% in the month following the month of sale 12% in the second month following the month of sale 3% uncollectible Smithfield's accounts receivable balance as of June 30 is $93,000 (net of expected bad debts which are reserved for) of which $30,000 represents uncollected May sales and $63,000 represents uncollected June sales. These amounts just represent what is collectible (uncollectible amounts have been written off). Company policy is to have a finished goods inventory at the end of each month equal to 20% of the next month's sales. Variable product costs are as follows: Ending inventory levels for raw materials should equal 40% of the production needs for the next month. Smithfield pays for 20% of direct material purchases during the month of purchase and the remaining 80% is paid during the following month. Other variable costs are incurred and paid during the month of production. The fixed operating costs total $10,000 a month (including depreciation of $3,000 ). Payments related to fixed overhead are made during the month incurred. Raw Materials and Finished goods inventories at the beginning of July were in accordance with the company's inventory policy. 1. What were total sales for each of the following months? a. May=$312,500 a. 80% on account, 3% bad debts, 65% in month, 20% following, 12% in 2nd following, uncollected sales are $30k,12% uncollected, May credit sales $30k/12%=$250,000/80% b. June =$246,094 a. Same\%'s as above, uncollected sales are $63k,32% uncollected, June credit sales $63k/32%=$196,875/80% 2. What are the expected cash collections for each of the following months? a. July =$213,375 a. Sales revenue at $200k, cash sales at 20% (\$40k), May credit at $30k,20% in following month ($39,375),65% in month ($104,000) b. August =$170,825 a. Sales revenue at $160k, cash sales at 20%($32k), June credit at $0,12% in 2nd following month ( $23,625),20% in following month (32k),65% in month ($83,200) 3. How many widgets does Smithfield expect to produce during the months of July, August and September? - 4. What is the RM purchases budget for July and August (in pounds and dollars)