Quarterly Sales Collection Budget
	Abril	Mayo	Junio	Total
Cash sales (20%) of the month	$ 16,200.00	$ 14,000.00	$ 16,900.00	$ 47,100.00
Cash sales (80%) previous month	$ 64,000.00	$ 64,800.00	$ 56,000.00	$ 184,800.00
Total collections	$ 80,200.00	$ 78,800.00	$ 72,900.00	$ 231,900.00
Purchase Budget for the quarter
			$ 81,000.00	$ 70,000.00	$ 84,500.00
	Abril`	Mayo	Junio	Total
Expected cost of sales (70%)	$ 56,700.00	$ 49,000.00	$ 59,150.00	$ 164,850.00
Final inventory	$ 12,250.00	$ 14,787.50	$ 11,130.00	$ 11,130.00
Available for sale	$ 68,950.00	$ 63,787.50	$ 70,280.00	$ 175,980.00
Less starting inventory	$ 15,400.00	$ 12,250.00	$ 14,757.50	$ 15,400.00
expected purchases	$ 53,550.00	$ 51,537.50	$ 55,492.50	$ 160,580.00
Quarterly purchase disbursement budget
	Abril	Mayo	Junio	Total
March purchase payments	$ 23,400.00	$ -	$ -	$ 23,400.00
April purchase payments (40%)	$ 21,420.00	$ 32,130.00	$ -	$ 53,550.00
May purchase payments	$ -	$ 20,615.00	$ 30,923.00	$ 51,538.00
June purchase payments	$ -	$ -	$ 22,197.00	$ 22,197.00
Total	$ 44,820.00	$ 52,745.00	$ 53,120.00	$ 150,685.00
Disbursement budget for administrative expenses and sales for the quarter
	Abril	Mayo	Junio	Total
salaries	$ 10,000.00	$ 10,000.00	$ 10,000.00	$ 30,000.00
Advertising	$ 6,000.00	$ 6,000.00	$ 6,000.00	$ 18,000.00
Remaining expenses (8%)	$ 6,480.00	$ 5,600.00	$ 6,760.00	$ 18,840.00
Total disbursements	$ 22,480.00	$ 21,600.00	$ 22,760.00	$ 66,840.00
Disbursement of administrative and sales expenses
	Abril	Mayo	Junio	Total
Beginning Cash Balance	$ 20,000.00	$ 10,870.00	$ 8,752.50	$ 20,000.00
Cash collections (1)	$ 80,200.00	$ 78,800.00	$ 72,900.00	$ 231,900.00
cash on hand	$ 100,200.00	$ 89,670.00	$ 81,652.50	$ 251,900.00
Less disbursements
Shopping (3)	$ 44,820.00	$ 52,745.00	$ 53,119.50	$ 150,684.50
Administrative and selling expenses (4)	$ 22,480.00	$ 21,600.00	$ 22,760.00	$ 66,840.00
Purchase of equipment	$ 24,000.00	$ 14,000.00	$ -	$ 38,000.00
Dividends	$ -	$ -	$ 4,700.00	$ 4,700.00
Total disbursements	$ 91,300.00	$ 88,345.00	$ 80,579.50	$ 260,225.00
excess cash	$ 8,900.00	$ (645.00)	$ 675.50	$ (8,325.00)
Financing	$ -	$ -	$ -	$ -
Loan	$ -	$ 9,000.00	$ 17,000.00	$ 26,000.00
Loan payment	$ -	$ -	$ (9,000.00)	$ (9,000.00)
interest 1%	$ -	$ -	$ 90.00	$ 90.00
Financing	$ -	$ 9,000.00	$ 7,910.00	$ 16,910.00
Effective Ending Balance	$ 8,900.00	$ 8,355.00	$ 8,585.50	$ 8,585.50

1. Certain data of the Statement of position (Balance Sheet) as of March 31, 20xx:

Dr Cr

Cash $20,000

Accounts receivable $64,000

Inventory $15,400

Buildings and equipment (net of depreciation) $225,000

Accounts payable $23,400

Long-term debts $90,000

Common shares- principal $150,000

Retained Earnings $61,000

Totals $324,400 $324,400

B. The projected and actual sales for various months of 20xx are:

March (reals) $80,000

April $81,000

May $70,000

June $84,500

July $63,600

C. Other important data:

1- Monthly sales are 20% in cash and 80% on credit. Credit sales from the previous month are collected in full in the following month (so what is in accounts receivable at the end of March is 80% of March sales).

2- The gross profit margin generated by the corporation on its sales is 30%.

3- Each month's ending inventory is equal to 25% of the next month's budgeted cost of sales.

4- 40% of monthly merchandise purchases are paid in the month of purchase and the rest in the month following the purchase.

5- The expected monthly expenses are: salaries, $10,000; advertising, $6,000 per month and remaining expenses (except depreciation) represent 8% of sales. Assume that these expenses are paid every month (nothing is due at the end of the month).

6- Depreciation expense is $10,000 for the quarter and includes the portion that corresponds to assets acquired during the period.

7- Equipment was purchased in cash: $24,000 in April and $14,000 in May 20xx.

8- Management wishes to maintain a minimum cash balance at the end of each month of $8,000.

9- When the company is in need of money, it can borrow from a local bank in increments of $1,000 at the beginning of each month up to a loan limit of $20,000. The interest rate that the bank charges on these loans is 1% per month and the interest is paid the next month (we assume that it is not compound interest and that each loan is made at the end of the month). The company paid dividends of $4,700 in June.