prepare cash budget for june

a. Green Spaces Ltd. sells industrial lawn mowers for $2,000 each. The company needs a cash budget for the month of June. The following information is available: Actual sales for May and expected sales for June are shown below. The company has both cash sales, and sales on account. Of the sales on account, 25% are collected in the month of sale, and 73% are collected in the month after sale. The remainder are uncollectible. May June Cash $14,000 $24,000 Sales Sales on $60,000 $80,000 account b. Purchases of their merchandise inventory (the lawn mowers that they sell) will total $90,000 for June. Twenty percent of a month's inventory purchases are paid for during the month of purchase. The remaining 80% is paid for in the following month. Inventory purchases in May were $60,000. Selling and administrative expenses are budgeted at $24,000 for June. Of this amount $4,000 is for depreciation. d. Equipment costing $38,000 will be purchased in June. Terms of the purchase are 50% down payment and the balance due in 60 days. Dividends of $3,000 and income tax installment payments of $4,000 are expected to be paid in June. f. The company must maintain a minimum cash balance of $8,000 at the end of c. e. each month. g. Any borrowings must be done at the beginning of the month and all borrowings can only be in thousand dollar increments. (.e. If they need $1,500, they must borrow $2,000.) The annual interest rate is 6% on any of the borrowings and is calculated and paid b. $60,000 $80,000 account Purchases of their merchandise inventory (the lawn mowers that they sell) will total $90,000 for June. Twenty percent of a month's inventory purchases are paid for during the month of purchase. The remaining 80% is paid for in the following month. Inventory purchases in May were $60,000. Selling and administrative expenses are budgeted at $24,000 for June. Of this amount $4,000 is for depreciation. Equipment costing $38,000 will be purchased in June. Terms of the purchase are 50% down payment and the balance due in 60 days. Dividends of $3,000 and income tax installment payments of $4,000 are expected to be paid in June. The company must maintain a minimum cash balance of $8,000 at the end of d. e. f. each month. 9. h. Any borrowings must be done at the beginning of the month and all borrowings can only be in thousand dollar increments. (.e. If they need $1,500, they must borrow $2,000 The annual interest rate is 6% on any of the borrowings and is calculated and paid at the end of each month. The cash balance at the beginning of June is $9,000. I. REQUIRED: Prepare a cash budget for June