PROBLEM 2 Snow White Comnpauy sells its product for S 8per unit. Its actual and projected sales units are as follows October September Angust 18,000 July June 14,000 15,000 20,000 Sales (Units) 12.000 All sales are on credit. According to the company's experience shows that 50 % of credit sales is collected in the month of the sale, 30 % in the momth after the sale, 18 % in the second month after the sale and the remainder is uncollectable. The product's purchase price is S 5 per unit. All purchases are payable within 20 days. Thus, 60% of purchase made ina month is paid in that month and the remaining 40 % in paid in the next month. The company has a policy to maintain no ending monthly inventory because of damage. Selling and administrative expenses for the year are S 240,000 and are paid evenly throughout the year in cash. The company decides to pay dividend S 2,500 in September. The company's mnimu cash balance for month-end is S 20,000 Required: Prepare a cash budget for August to October Snow White Company sells its product for $ 8 per unit. Its actual and projected sales units are as follows June July August September Sales (Units) 15,000 October 12,000 14,000 20,000 18,000 All sales are on credit. According to the company's experience shows that 50 % of credit sales is collected in the month of the sale, 30 % in the month after the sale, 18 % in the second month after the sale and the remainder is uncollectable. The product's purchase price is $ 5 per unit. All purchases are payable within 20 days. Thus, 60% of purchase made in a month is paid in that month and the remaining 40% is paid in the next month. The company has a policy to maintain no ending monthly inventory because of damage Selling and administrative expenses for the year are $ 240,000 and are paid evenly throughout the year in cash. The company decides to pay dividend 2,500 in September. The company's minimum cash balance for month-end is $ 20,000 Required: Prepare a cash budget for August to October