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You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The town information is available about the company's operations: a. The cash balance on December 1 is $47.000. b. Actual sales for October and November and expected sales for December are as follows: bok Cash sales Sales on account October November December $ 83,000 $ 79,000 $ 85,600 $ 500,000 $ 624,000 $ 674,000 int Sales on account are collected over a three-month period as follows: 20% collected in the month or sale, 60% collected in the month following sale, and 18% collected in the second month following sale. The remaining 2% is uncollectible ences c. Purchases of inventory will total $372,000 for December. Thirty percent of a month's inventory purchases are paid during the mon of purchase. The accounts payable remaining from November's inventory purchases total $189.500, all of which will be paid in December d. Selling and administrative expenses are budgeted at $502,000 for December of this amount $69,000 is for depreciation e. A new web server for the Marketing Department costing $88,500 will be purchased for cash during December, and dividends totaling $14.500 will be paid during the month. f. The company maintains a minimum cash balance of $20,000. An open line of credit is available from the company's bank to increase its cash balance as needed. Required: 1. Calculate the expected cash collections for December 2. Calculate the expected cash disbursements for merchandise purchases for December 3. Prepare a cash budget for December indicate in the financing section any borrowing that will be needed during the month. Assume that any interest will not be paid until the following month in the tabs below. - Wat is correct or incorrect for the WOT you neve completed so for so m e como Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the cand year. The company's balance sheet as of June 30th is shown below Beach Corporation Balance Sheet June 30 Assets Cash Accounts receivable Inventory Plant and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity > 4,000 144,000 63,758 223,00 $ 514,750 $ 64,00 349,000 81,758 $ 514,750 Beech's managers have made the following additional assumptions and estimates 1. Estimated sales for July August, September, and October will be $340,000, $360,000 $350,000 and $370,000, respectively 2. All sales are on credit and all credit sales are collected Each month's credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at June 30 will be collected in July 3. Each month's ending inventory must equal 25% of the cost of next month's sales. The cost of goods sold is 75% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July 4. Monthly selling and administrative expenses are always $44,000. Each month $6,000 of this total amount is depreciation expense and the remaining $38,000 relates to expenses that are paid in the month they are incurred 5. The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30 The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30, !! Next > 3 of 4 Required: 1. Prepare a schedule of expected cash collections for July August, and September Prey 1 of 4