Problem D: Sales Budget, Schedules of Cash Receipts, Purchases Budget, and Cash Payments 1 2 3 Sales in units Sales price per unit (GIVEN) 5 Sales Revenue Galaxy Lighting Company Sales Budget Sept 8,750 $40 $ 350,000 $ Oct 12,500 $40 500,000 $ Nov the first month is done for you 10,000 (calculate as Revenue / sales price) $40 given 400,000 3 3 Galaxy Lighting Company Schedule of Cash Receipts Sept $ 350,000 $ Sales revenue (from sales budget) Oct 500,000 $ Nov the first month is done for you 400,000 2 Cash Collections from sales: 80% collected in month of sale 20% collected in month after sale Total Cash collections from sales 280,000 80,000 360,000 $ 400,000 70,000 470,000 $ 320,000 100,000 420,000 3 3 e Sales in Units (from sales budget) Add: Desired Ending Inventory Total Needs Less: Beg. Inventory Purchases Required in units xpurchase cost per unit (GIVEN) Purchases Required in Dollars Galaxy Lighting Company Purchases Budget Sept 8,750 2,250 11,000 (1,875) 9,125 $18 $ 164,250 $ Oct 12,500 2,0no 14,500 (2,250) 12,250 $18 220,500 $ Nov the first month is done for you 10,000 2,500 (1,000 units +10% of next month's sales except 12,500 (2,000) Sept Beg inventory given from Aug ending inver 10,500 $18 given 189,000 Galaxy Lighting Company Schedule of Cash Payments for Purchases Sept Purchases (in dollars) (from purchases budget) $ 164,250 $ Oct 220,500$ Nov the first month is done for you 189,000 from purchases budget Cash payments for purchases: Accounts payable, August 31 (GIVEN) 60% in month of purchase 40% in month after purchase Total cash payments for purchases $ $ 13,500 98,550 $ 132,300 $ 65,700 198,000 $ 113,400 88,200 201,600 $ 112,050 $ Problem E: Refer to the Problem D. In addition to the information given, selling and administrative expenses paid in cash are $220,000 per month. The cash balance for September 1 is $80,000. . 14 points Prepare a monthly cash budget for September, October, and November for Galaxy Lighting Company. 5 - Problem E: Cash Budget 3 Galaxy Lighting Company Cash Budget Sept Nov (the first month is done for you) 2 Beginning Cash Balance, Sept 1 $ 80,000 3 Add: Cash collections from customers 360,000 from schedule of cash receipts from Problem D 4 Total Cash Available 440,000 5 6 Less: Cash payments for purchases 112,050 from schedule of cash payments for purchases from Problem D 7 Cash payments for selling and admin (GIVEN) 220,000 Given in problem Total Cash Payments 332,050 9 0 Ending Cash Balance $ 107,950 1 0 1 Oct 8 2