Projected Sales 40% of sales are anticipated to be to cash paying customers The rest will be credit customers.To encourage prompt payment, Collectivia will offer terms of 2/30, n/60. That means customers get 2% off if they pay within 30 days.The balance is due within 60 days.Based on experience in similar businesses, it is anticipated that 70% of the credit customers will take advantage of these terms and pay in 30 days, which means they will pay 2% less than what is owed. That leaves 30% of the credit customers.Again based on past experience, it appears the 30% will break down as follows: 15% will pay in the following month after the sale; 10% will pay 2 months after the sale; and unfortunately 5% will not pay at all and those accounts will be written off as uncollectible. Because Collectivia is a new business there is no beginning A/R balance from a previous period, because there is no previous period. The accountant had starteda diagram and a cash collections schedule but then consumed too many Triple Venti Half Sweet Non-fat, Half Decaf Soy Caramel Macchiatos and became disoriented. Required: Finish the Expected Cash Collections Budget.Use 2 decimal places for cents.A colorful budget is optional, but may be helpful in tracking sales and months. Color or no, use Good Form.Include 2 decimal places. Cash Sales in Current Month Sales on Account Collected in Current Month less discount Sales Collected 1 Month After Sale Sales Collected 2 Months After Sale Total Collections for the Month Payleast Socks has the following information. Cashew Candy Cups needs a Cash Budget prepared for the period ending 12/31 of the current year. Supporting Budgets for the same time frame are in gray Budget totals represent Q1, Q2, Q3, Q4, YEAR All dollar amounts result from cash transactions. Not all of the budgets provided are used to create a cash budget. In addition to the budgets, the following information is needed:

is taken out to return to a $2,000 balance.Interest on the loan is 6% and is payable in 3 months when the loan is due, which is the start of the next quarter. Note: the amount that is borrowed in this example is less than would realistically be borrowed from a bank. No other cash transactions or changes, beyond what is listed. Required: Prepare a Cash Budget for the Current Year in Good Form.Whole dollar amounts are fine, until the Financing section. ,Q

CASH COLLECTIONS AND PAYMENTS AND THE CASH BUDGET (50 PTS) PROBLEM #1 The Collectivia Coffee Wholesaler Shop is a new company that has not yet started operations. It has the following information regarding anticipated sales and collections. Projected Sales $ Jan 1,500 $ Feb 1,200 $ Mar 1,150 $ Apr 1,550 $ May 1,600 $ Jun 2,000 $ Jul 2,400 40% of sales are anticipated to be to cash paying customers The rest will be credit customers. To encourage prompt payment, Collectivia will offer terms of 2/30, n/60. That means customers get 2% off if they pay within 30 days. The balance is due within 60 days. Based on experience in similar businesses, it is anticipated that 70% of the credit customers will take advantage of these terms and pay in 30 days, which means they will pay 2% less than what is owed. That leaves 30% of the credit customers. Again based on past experience, it appears the 30% will break down as follows: 15% will pay in the following month after the sale; 10% will pay 2 months after the sale; and unfortunately 5% will not pay at all and those accounts will be written off as uncollectible. Because Collectivia is a new business there is no beginning A/R balance from a previous period, because there is no previous period. The accountant had started a diagram and a cash collections schedule but then consumed too many Triple Venti Half Sweet Non-fat, Half Decaf Soy Caramel Macchiatos and became disoriented. Required: Finish the Expected Cash Collections Budget. Use 2 decimal places for cents. A colorful budget is optional, but may be helpful in tracking sales and months. Color or no, use Good Form. Include 2 decimal places. Sales 40% Cash Sales 60% Credit Sales Pay in month Cash Sales in Current Month Sales on Account Collected in Current Month less discount Sales Collected 1 Month After Sale Sales Collected 2 Months After Sale Total Collections for the Month $ after sale after sale 70% of 60% Feb 600.00 $ 617.40 $ $ Pay 2 months of sale (- disc) Jan $ $ Pay 1 month 15% of 60% 10% of 60% COLLELCTIVIA COFFEE WHOLESALER SHOP EXPECTED CASH COLLECTIONS BUDGET FOR 6 MONTHS ENDING JULY 31, 20XX Mar Apr May Jun 480.00 493.92 135.00 $ $ 1,217.40 $ 1,108.92 108.00 90.00 $ Jul 72.00 PROBLEM #2 Payleast Socks has the following information. From the Direct Materials Budget: Cost of Raw Materials for June = $5000; For July = $6000; For Aug = $7000 Beginning balance of Accounts Payable is $2150. Payleast pays 25% of direct material invoices in the month of purchase, 25% of direct materials invoices in the month after the purchase; and 50% of direct material invoices 2 months after purchase. Required: Prepare an Expected Cash Payments Budget for June, July, Aug of this year in good form. Use the space below. Include 2 decimal places for each number. Uncollectible, 5% of 60% PROBLEM #3 Cashew Candy Cups needs a Cash Budget prepared for the period ending 12/31 of the current year. Supporting Budgets for the same time frame are in gray Budget totals represent Q1, Q2, Q3, Q4, YEAR All dollar amounts result from cash transactions. FROM THE SALES BUDGET - all sales are in cash Not all of the budgets provided are used to create a cash budget. In addition to the budgets, the following information is needed: Beginning Cash balance at the start of Q1 = $1600. In Q2 Equipment of $300 was bought. If the cash balance ever drops below $2000, a loan is taken out to return to a $2,000 balance. Interest on the loan is 6% and is payable in 3 months when the loan is due, which is the start of the next quarter. Note: the amount that is borrowed in this example is less than would realistically be borrowed from a bank. No other cash transactions or changes, beyond what is listed. Total Sales $8,000 $7,800 FROM THE EXPECTED CASH PAYMENTS BUDGET - only payments to suppliers for materials are included $7,600 $8,200 $31,600 FROM THE EXPECTED CASH COLLECTIONS BUDGET Total Collections $4,600 $4,400 950 960 $4,600 $4,800 $18,400 $3,245 $3,450 $3,120 $3,260 $3,240 $12,690 940 $3,160 Total Budgeted Direct Labor $820 $840 $800 $810 $3,270 FROM THE MANUFACTURING OVERHEAD BUDGET - all cash expenditures for overhead 940 3,790 FROM THE DIRECT MATERIALS BUDGET - cost of materials is not necessarily what is spent in cash for materials. See Expected Cash Payments Budget. Total Cost of Direct Materials $3,070 FROM THE DIRECT LABOR BUDGET FROM THE PRODUCTION BUDGET - units not dollars or cash Required Level of Production Total Payments $3,200 Required: Prepare a Cash Budget for the Current Year in Good Form. Whole dollar amounts are fine, until the Financing section. Then format for 2 decimal places for cents. Total Mfg Overhead $185 $190 $185 $180 $740 FROM THE SELLING AND ADMIN EXPENSE BUDGET - all cash expenditures for overhead $13,055 Total S&A Exp $75 $70 $75 $80 $300