Kelsey is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for merchandise for the next three months follow. Budgeted Sales Cash payments for merchandise July $63,680 41,200 August $80,480 33,280 September $48,480 34,90 Sales are 20% cash and 80% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet Includes balances of $12,700 In cash; $46,500 In accounts receivable; $4,900 in accounts payable; and a $2,400 balance in loans payable. A minimum cash balance of $12,400 is required. Loans are obtained at the end of any month when a cash shortage occurs. interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If an excess balance of cash exlsts, loans are repald at the end of the month. Operating expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries ($4,400 per month), and rent ($6,900 per month). (1) Prepare a cash receipts budget for July, August, and September. (2) Prepare a cash budget for each of the months of July, August, and September. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a cash receipts budget for July, August, and September July August s 80,400 September $ 48,400 Total sales S 63,600 Cash sales 20% Credit sales 80% KELSEY September Cash Receipts Budget For July, August, and September July August Cash sales Collections of accounts receivable Total cash receipts Kelsey is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for merchandise for the next three months follow. Budgeted Sales Cash payments for merchandise July $63,680 41,200 August $80,480 33,280 September $48, 480 34, eee Sales are 20% cash and 80% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet Includes balances of $12,700 in cash; $46,500 in accounts recevable: $4,900 in accounts payable; and a $2,400 balance in loans payable. A minimum cash balance of $12,400 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If an excess balance of cash exists, loans are repald at the end of the month. Operating expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries ($4,400 per month), and rent ($6,900 per month). (1) Prepare a cash receipts budget for July, August, and September. 2) Prepare a cash budget for each of the months of July, August, and September Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a cash budget for each of the months of July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) KELSEY Cash Budget For July, August, and September July August September Beginning cash balance $ 12.700 Total cash available Cash payments for: 0 0 Total cash payments Preliminary cash balance Ending cash balance Loan balance July August September $ 2.400 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month
