Prepare budget for cash disbursements for accounts payable Bearcat City purchases raw materials on account for use in production. Bearcat City typically pays 30% 4 on account in the month of the billing and the remaining 70% is paid in the following month. Prepare a 5 schedule of expected cash disbursements for the months of September and October based on the direct 6 materials purchases budget shown below of expected purchases on account: 37 38 August $ 370,000 39 September $ 400,000 40 October $ 425,000 41 42 43 Calculation: 44 $ credit purchases % paid Month of Payment 45 August September October 46 47 48 September X 49 50 51 52 October 53 54 Monthly Total 55 56 57 D E F G Prepare budget for cash collections on credit sales: Doctors Inc is a medical billing company. All services are billed to the patients (ie., no cash sales). Doctors Inc expects, on average, that 35% will be paid in the month of billing and the remaining 65% will be paid in the following month. Prepare a schedule of expected cash collections of accounts receivable for the months of April through June (second quarter) based on the following billings estimates: = March April May June $ $ $ $ 185,000 190,000 200,000 180,000 0 1 2 Calculation: 3 $ credit sales % collected Month of Collection April May June X X 14 March: 15 16 17 April: 18 19 20 21 May: 22 23 24 25 June; 26 27 28 29 X X Monthly Total