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, 2016, Sutters management requested a cash budget for June. The following selected account balances at May 31, 2016, 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 12/31/2016) 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 2016. Collections in June from customers: From April sales $Answer 0 From May sales Answer 0 From June sales Answer 0 Total collections $Answer 0 Payments on account for merchandise purchases: May June Unit Sales Answer 0 Answer 0 Ending inventories Answer 0 Answer 0 Total units to be available Answer 0 Answer 0 Beginning inventories Answer 0 Answer 0 Units to be purchased Answer 0 Answer 0 Total dollar purchases $Answer 0 $Answer 0 Portion paid in June $Answer 0 $Answer 0 Payment of operating expenses: May June Total variable operating expenses $Answer 0 $Answer 0 Fixed operating expenses Answer 0 Answer 0 Total operating expenses Answer 0 Answer 0 Monthly depreciation Answer 0 Answer 0 Operating expenses requiring payment $Answer 0 $Answer 0 Amounts to be paid in June $Answer 0 $Answer 0 Cash required at time of plane purchase: Cost of new plane $Answer 0 Book value of old plane $Answer 0 Gain on trade-in Answer 0 Total trade-in allowance Answer 0 Balance owing at trade-in Answer 0 Portion to be financed Answer 0 Cash payment required Answer 0 Sutter, Inc. Cash Budget For the Month Ended June 30, 2016 Beginning cash balance $Answer 0 Cash receipts: Collections from customers (calculated above) Answer 0 Answer Answer 0 Short-term borrowing Answer 0 Cash available Answer 0 Cash disbursements: Payments on accounts payable (calculated above) Answer 0 Payments of operating expenses payable (calculated above) Answer 0 Down payment on computer (calculated above) Answer 0 Answer Answer 0 Total cash disbursements Answer 0 Ending cash balance $Answer 0