Monthly Cash Budget Sutter, Inc. is a wholesaler for its only product, deluxe wireless rechargeable electric shavers, which sell for $72 each and cost Sutter $50 each. On June 1, 2016, Sutter's 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)				600,000
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 month's 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 $10.10 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 $1,960,000. 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. Sutter's 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.

Sutter, Inc. Cash Budget For the Month Ended June 30, 2016 Beginning cash balance Cash receipts: $ 56000 2952000 Payment on dividends declared Paymenton note payable Sale on securities Luart uvuruNIC Cash disbursements: 3,330,300 Payments on accounts payable (calculated above) Payments of operating expenses payable (calculated above) Payment on airplane (calculated above) Total cash disbursements Ending cash balance $