P$4-11$ Cash budget: Basic Farmers Delight Corporation reported sales of $$350,000$ in

June, $$380,000$ in July, and $$390,000$ in August. The forecasts for September, October, and

November are $$385,000,$$$418,000,$ and $$429,000,$ respectively. The initial cash balance on

September $1$ is $$150,000,$ and a minimum of $$8,000$ should be kept. Use the given

information to compile a cash budget for the months of September, October, and

November.

a$.$ Farmers Delight predicts that $5\%$ of its sales will never be collected, $30\%$ of its

sales will be cash sales, and the remaining $65\%$ will be collected in the following

month.

b$.$ Farmers Delight receives other monthly income of $$3,000.$

c$.$ The actual or expected purchases are $$150,000,$$$120,000,$ and $$115,000$ for the

months of September to November, respectively, and $50\%$ are paid in cash while

the remainder is paid in the following month. The purchases for August were

$$120,000.$

d$.$ Monthly rent is $$3,500$ chargeable only in October and November.

e$.$ Wages and salaries are $12\%$ of the previous month's sales.

f$.$ Cash dividends of $$4,600$ are declared and will be paid in September.

g$.$ Long$-$term loan repayment of principal and interest of $$4,700$ is due in October.

h$.$ Additional equipment costing $$8,500$ is ordered and scheduled to be paid for in cash

in November.

i$.$ Taxes of $$8,250$ are due in November.