PDC’s sales are projected to be $80,000 in September 2020.

 

1. Prepare PDC’s sales schedule, purchases schedule, and wages schedule for August 2020.
2. Prepare a cash budget for August 2020 for PDC and describe how the forecast affects the end-of-the-month cash balance.
   

(AI SALES SCHEDULE APRIL TO MARCH APRIL MAY JUNE JULY AUGUST JULY Schedule 1: Sales Forecast 92,000 115,000 184,000 138,000 115,000 92,000 552,000 Credit sales, 40% 36,800 46,000 73,600 55,200 46,000 Cash sales, 60% 55,200 69,000 110,400 82,800 69,000 Schedule 2: Cash Collections Cash sales this month 69,000 110,400 82,800 69,000 100% of last month's credit sales 36,800 46,000 73,600 55,200 Total collections 105,800 156,400 156,400 124,200 (B) PURCHASES SCHEDULE APRIL TO APRIL MAY MARCH JUNE JULY JULY Schedule 3: Purchases Ending inventory 110,400 149,040 123,280 110,400 97,520 Cost of goods sold 64,400 80,500 128,800 96 800 80,500 386 400 Total needed 174,800 229,540 252,080 207,000 178,020 Beginning inventory -97,520 -110,400 -149,040 -123,280 -110,400 Purchases 2807 119,140 103,040 83,720 67 620 Schedule 4: Purchase Disbursements 50% of last month's purchasos 38,840 59,570 51,520 41,860 50% of this month's purchases 59.570 51,520 41,860 33,810 Disbursements for purchases 98,210 111,090 93,380 75,670 (C) WAGES AND COMMISSIONS SCHEDULE APRIL TO MARCH APRIL MAY JUNE JULY JULY Schedule 5: Wages and Commissions Wages, all fixed 5,750 5,750 5,750 5,750 5,750 Commissions (15% of current sales) Total 13,800 17.250 27.600 20,700 17,250 19,50 23,000 33,350 26,450 23,000 105,800 Schedule 6: Disbursements- Wages and Commissions 50% of last month's expenses 9,775 11,500 16,675 13,225 50% of this month's expenses 11,500 16,675 13,225 11,500 Total 21,275 28,175 29,900 24,725