Monthly Cash Budget Sutter, Inc. is a wholesaler for its only product, deluxe wireless rechargeable electric shavers, which sell for $70 each and cost Sutter $48 each. On June 1, 2019, Sutters management requested a cash budget for June. The following selected account balances at May 31, 2019, were gathered by the accounting department:

Cash				$56,000
Marketable securities (at cost)				160,000
Accounts receivable (all trade)				2,170,000
Inventories (12,000 units)				576,000
Operating expenses payable				196,800
Accounts payable (all merchandise)				902,400
Note payable (due 12/31/2019)				600,000

Actual sales for April and May were 30,000 and 50,000 units, respectively. Projected unit sales for June and July are 40,000 and 20,000, respectively. Experience indicates that 50% of sales should be collected in the month of sale, 30% in the month following sale, and the balance in the second month following sale. Uncollectible accounts, returns, and allowances are negligible.

Planned purchases should provide ending inventories equal to 30% of next months unit sales volume. Approximately 60% of the purchases are paid for in the month of purchase and the balance in the following month.

Monthly operating expenses are budgeted at $9.60 per unit sold plus a fixed amount of $288,000 including depreciation of $112,000. Except for depreciation, 70% of operating expenses are paid in the month incurred and the balance in the following month. Interest expense is included in operating expenses.

Special anticipated June transactions include the following: 1. Declaration of a $60,000 cash dividend to be paid 2 weeks after the June 20 date of record. 2. Sale of all but $40,000 of the marketable securities held on May 31; a gain of $18,000 is anticipated. 3. Payment of $50,000 installment on the note payable. 4. Trade-in of an old company plane originally costing $300,000 and now having accumulated depreciation of $200,000 at a gain of $160,000 on a new plane costing $2,000,000. Sufficient cash will be paid at the time of trade-in so that only 50% of the total price will have to be financed. 5. Sutters treasurer has a policy of maintaining a minimum month-end cash balance of $40,000 and has a standing arrangement with the bank to borrow any amount up to a limit of $400,000.

Prepare a cash budget for Sutter, Inc., for June 2019.

Collections in June from customers:

From April sales
From May sales
From June sales
Total collections

Payments on account for merchandise purchases:

	May	June
Unit Sales
Ending inventories
Total units to be available
Beginning inventories
Units to be purchased
Total dollar purchases
Portion paid in June

Payment of operating expenses:

	May	June
Total variable operating expenses
Fixed operating expenses
Total operating expenses
Monthly depreciation
Operating expenses requiring payment
Amounts to be paid in June

Cash required at time of plane purchase:

Cost of new plane
Book value of old plane
Gain on trade-in
Total trade-in allowance
Balance owing at trade-in
Portion to be financed
Cash payment required

Sutter, Inc. Cash Budget For the Month Ended June 30, 2019
Beginning cash balance
Cash receipts:
Collections from customers (calculated above)
Payment on dividends declaredPaymenton note payableSale on securities
Short-term borrowing
Cash available
Cash disbursements:
Payments on accounts payable (calculated above)
Payments of operating expenses payable (calculated above)
Payment on airplane (calculated above)
Payment on dividends declaredPaymenton note payableSale on securities
Total cash disbursements
Ending cash balance