Problem 7-16A Schedules of Expected Cash Collections and Disbursements [LO2, LO4, LO8]

Calgon Products, a distributor of organic beverages, needs a cash budget for September. The following information is available:

a.	The cash balance at the beginning of September is $10,700.
b.	Actual sales for July and August and expected sales for September are as follows:

	July		August		September
Cash sales	$	5,600	$	5,000	$	8,800
Sales on account		23,000		32,000		39,000
Total sales	$	28,600	$	37,000	$	47,800

	Sales on account are collected over a three-month period as follows: 10% collected in the month of sale, 60% collected in the month following sale, and 26% collected in the second month following sale. The remaining 4% is uncollectible.
c.	Purchases of inventory will total $30,000 for September. Thirty percent of a month's inventory purchases are paid for during the month of purchase. The accounts payable remaining from August's inventory purchases total $17,000, all of which will be paid in September.
d.	Selling and administrative expenses are budgeted at $16,000 for September. Of this amount, $4,000 is for depreciation.
e.	Equipment costing $16,000 will be purchased for cash during September, and dividends totaling $5,000 will be paid during the month.
f.	The company maintains a minimum cash balance of $6,700. An open line of credit is available from the company's bank to bolster the cash balance as needed.

Required:
1.	Prepare a schedule of expected cash collections for September. (Do not round intermediate calculations.)

Schedule of Expected Cash Collections
September cash sales	$
September collections on account:
July sales
August sales
September sales
Total cash collections	$

2.	Prepare a schedule of expected cash disbursements for inventory purchases for September. (Do not round intermediate calculations.)

Schedule of Expected Cash Disbursements
Payments to suppliers:
August purchases	$
September purchases
Total cash payments	$

3.

Prepare a cash budget for September. Indicate in the financing section any borrowing that will be needed during September. Assume that any interest will not be paid until the following month. (Input all amounts as positive values except cash deficiency, repayments and interest which should be indicated by a minus sign. Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required.)

Calgon Products Cash Budget For the Month of September
Cash balance, beginning		$
Add cash receipts:
Collections from customers
Total cash available before current financing
Less disbursements:
Payments to suppliers for inventory	$
Selling and administrative expenses
Equipment purchases
Dividends paid
Total disbursements
Excess (deficiency) of cash available over disbursements
Financing:
Borrowings
Repayments
Interest
Total financing
Cash balance, ending		$