Quagmire Inc. has prepared the following sales budget for the quarter of April, May and June Sales Budget May 10000 13500 x $30x $30 $300000 $405000 April Sales in units Selling price per unit Sales revenue June 11500 x $30 Total 35000 $345000 $1050000 S All of the sales are on credit. Quagmire collects from customers as follows 40% of sales in the month of sale 30% in the month following the sale, and re 30% in the second month following the sale Cash receipts budget Total 420000 90000 121500319500 297000 S 327000 S 360000 S 349500 $ 1036500 June 120000 162000 138000 April May Collect from current sales Collect from last month Collect from 2 mos. Prion Cash receipts 108000 99000 108000 90000 Quagmire expects cost of goods sold to be 30% of sales. They keep 20% of next months expected cost of goods sold in ending inventory. Below are budgeted purchases of inventory All purchases are paid for in the SAME month as the purchase. Purchases Budget April May June Total Budgeted cost of goods sold 90000 121500 103500 315000 plus desired ending inventory Total needs 20700 1620016 16200 114300 142200 119700 331200 (18000)(24300)(20700)18000) 99000 313200 24300 less beginning inventory Cost of purchases 96300117900 Below is the budget for variable and fixed selling and administrative expenses Selling and admin expenses are paid in the month AFTER they are incurred Fixed expenses include depreciation of 27000 each month. Sales and Admin Budget April 60000 May 81000 Total 69000 210000 June riable S&A expenses Fixed S&A (including depreciation) 135000 135000135000405000 Quagmire has $207000 of cash on hand at he beginning of May Prepare a cash budget for May and June. (Use excel so that multiple attempts are easier.) Compute the beginning balance in cash for June Compute the ending balance in cash for June