Problem 4 (20 Points) Instructions: Using the following information for the Allied Company, prepare a Cash Budget for July, August, and September. July August September Credit sales 1,275,800 1,483,500 1,096,300 Credit inventory purchases 765,480 890,160 657,780 Cash disbursements: Wages and salaries 348,600 395,620 337,150 Rent 40,000 40,000 40,000 Utilities 14,500 17,800 19,800 Credit sales collections: Collected in month of sale 35% Collected in month after sale 6596 June credit sales 1,135,020 June credit inventory purchases 681,012 Beginning cash balance (July 1) 425,000 All credit inventory purchases are paid in the month after purchase. A B C D E F G Allied Company Cash Budget July August September Sales 5 3 Beginning cash balance 3 Cash receipts: 10 11 From sales in: 12 June 13 July 14 August 15 September 16 Total cash receipts 17 18 Collection Pattern %'s 19 Month of sale 20 Month after sale 21 22 23 Cash disbursements: 24 25 26 27 28 29 Total cash disbursements 30 31 Ending cash balance 32 33 34 Deblom Pmhlem