Part III Case Analysis (20 Marks) Schedules of Expected Cash Collections and Disbursements Calgon Products, a distributor of organic beverages, needs a cash budget for September. The following information is available: a. The cash balance at the beginning of September is $9,000. b. Actual sales for July and August and expected sales for September are shown below. Sales on account are collected over a three-month period as follows: 10% collected in the month of sale, 70% collected in the month following sale, and 18% collected in the second month following sale. The remaining 2% is uncollectable. July $6,500 September Cash sales Sales on account 20,000 Total Sales 5,250 30,000 $35,250 $7,400 40,000 $47.400 $26,500 c. Purchases of inventory will total $25,000 for September. Twenty percent of a month's inventory purchases are paid for during the month of purchase. The accounts payable remaining from August's inventory purchases total $16,000, all of which will be paid in September. d. Selling and administrative expense are budgeted at $13,000 for September. Of this amount, $4,000 is for depreciation. e. Equipment costing $18,000 will be purchased for cash during September, and dividends totaling $3,000 will be paid during the month. f. The company maintains a minimum cash balance of $5,000. An open line of credit is available from the company's bank to bolster the cash position as needed. Required: Prepared a schedule of expected cash collections for September. (6 marks) Prepared a schedule of expected cash disbursement during September for inventory purchases. (6 marks) Prepare a cash budget for September. Indicate in the financing section any borrowing that will be needed during September. 1. 2. 3. (8 marks)