Problem 13-47 Budgeted Purchases and Cash Flows (LO 13-4, 5, 6)

Delhi, Inc., seeks your assistance in developing cash and other budget information for August, September, and October. At July 31, the company had cash of $12,000, accounts receivable of $867,000, inventories of $580,770, and accounts payable of $172,592. The budget is to be based on the following assumptions.

	Each months sales are billed on the last day of the month.
	Customers are allowed a 3 percent discount if payment is made within 10 days after the billing date. Receivables are recorded in the accounts at their gross amounts (not net of discounts).
	The billings are collected as follows: 60 percent within the discount period, 25 percent by the end of the month, and 9 percent by the end of the following month. Six percent is uncollectible.

Purchase data are as follows.

	Of all purchases of merchandise and selling, general, and administrative expenses, 50 percent is paid in the month purchased and the remainder in the following month.
	The number of units in each months ending inventory equals 135 percent of the next months units of sales.
	The cost of each unit of inventory is $9.
	Selling, general, and administrative expenses, of which $4,000 is depreciation, equal 20 percent of the current months sales.
	Actual and projected sales follow:

		Dollars	Units
June	$	663,600	47,400
July		672,000	48,000
August		669,200	47,800
September		628,600	44,900
October		683,200	48,800
November		683,200	48,800

Required:
(a)	Compute the Budgeted purchases in dollars for August.

(b)	Compute the Budgeted purchases in dollars for September.

(c)	Compute the Budgeted cash collections during August. (Round your intermediate calculations and final answer to nearest dollar amount.)

(d)	Compute the Budgeted cash disbursements during September. (Round your intermediate calculations and final answer to nearest dollar amount.)

(e)	Compute the budgeted number of units of inventory to be purchased during October.