Path:p> span > Span QUESTION 15 Boatsahoy Company, has budgeted sales revenues as follows: SEPT OCT NOV Credit sales $135,000 $125,000 $ 90,000 Cash sales 90.000 255.000 195.000 Total sales $225 000 $380.000 $285.000 Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will be collected in the following month. Pu April $300,000 May 240.000 June 105,000 Other cash disbursements budgeted: (a) selling and administrative expenses of $48.000 each month, (b) dividends of S103,000 will be baid in October, and (c) The company wishes to maintain a minimum cash balance of $50,000 at the end of each month. The company borrows money from the bank at 6% interest if $50,000 Assume that borrowed money in this case is for one month. Instructions: Present the analysis in good fomat. Hint: Construct a table for best results ( 4 columns and add lines as needed). Otherwise, use [a] Prepare a cash budget for the month of OCTOBER. Be sure prepare separate schedule for expected collections from (a) cash sales and (b) credit customers Also, present the projected cash payments for inventory purchases in a separate schedule [b] For the month of NOVEMBER prepare a separate schedule for expected collections from (a) cash sales and (b) credit customers. For the toolbar, press ALT+F10 (PC) or ALTFN+F10 (Mac) T TT Arial 3 (120) TE Words 134 NOV $ 90,000 195.000 $285.000 sining 40% will be collected in the following month. Purchases of inventory are all on credit and 50% is paid in the month of purchase and 50% in the month following purchase. Budgeted inventory purchases are b) dividends of S103,000 will be held in October, and (c) purchase of equipment in November for 530 000 cash ompany borrows money from the bank at 6% interest if necessary to maintain the minimum cash balance. Borowed money la repaid in months when there is an excess cash balance. The beginning cash balance on OCT 1 was columns and add times as needed). Otherwise use the space bar, not the tab key for spacing, cted collections from ( cash sales and credit customers sh sales and (b) credit customers Path:p> span > Span QUESTION 15 Boatsahoy Company, has budgeted sales revenues as follows: SEPT OCT NOV Credit sales $135,000 $125,000 $ 90,000 Cash sales 90.000 255.000 195.000 Total sales $225 000 $380.000 $285.000 Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will be collected in the following month. Pu April $300,000 May 240.000 June 105,000 Other cash disbursements budgeted: (a) selling and administrative expenses of $48.000 each month, (b) dividends of S103,000 will be baid in October, and (c) The company wishes to maintain a minimum cash balance of $50,000 at the end of each month. The company borrows money from the bank at 6% interest if $50,000 Assume that borrowed money in this case is for one month. Instructions: Present the analysis in good fomat. Hint: Construct a table for best results ( 4 columns and add lines as needed). Otherwise, use [a] Prepare a cash budget for the month of OCTOBER. Be sure prepare separate schedule for expected collections from (a) cash sales and (b) credit customers Also, present the projected cash payments for inventory purchases in a separate schedule [b] For the month of NOVEMBER prepare a separate schedule for expected collections from (a) cash sales and (b) credit customers. For the toolbar, press ALT+F10 (PC) or ALTFN+F10 (Mac) T TT Arial 3 (120) TE Words 134 NOV $ 90,000 195.000 $285.000 sining 40% will be collected in the following month. Purchases of inventory are all on credit and 50% is paid in the month of purchase and 50% in the month following purchase. Budgeted inventory purchases are b) dividends of S103,000 will be held in October, and (c) purchase of equipment in November for 530 000 cash ompany borrows money from the bank at 6% interest if necessary to maintain the minimum cash balance. Borowed money la repaid in months when there is an excess cash balance. The beginning cash balance on OCT 1 was columns and add times as needed). Otherwise use the space bar, not the tab key for spacing, cted collections from ( cash sales and credit customers sh sales and (b) credit customers