Question 1: Cash Burgt-Version (24 marks) Sushi House has budgeted sales as follows O H S 9 2 Cash sales Kredit sales Total sales une July August $24,000 $ 20,000 85.000 $199,000 $30,000 12.000 $102,000 80.000 $100.000 Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will be collected in the following month Purchases of inventory are all on credit. 70% of purchases is paid in the month of purchase and 30% in the month following purchase Bulted intory has a June 9 20 11 12 13 14 15 16 July August $45,000 43,000 40,000 17 18 Other cash disbursements budgeted 19 selling and administrative expenses of $54,000 each month, which includes $10,000 depreciation. 20 Dividends of $30,000 will be paid in July, and purchase of a computer in August for $3,000 cash 21 22 The beginning cash balance on July 1 was $25,000. The company wishes to maintain a minimum cash balance of $20,000 at the end of each month 23 The company borrows money from the bank at 12% annual interest if necessary to maintain the minimum cash balance. 24 Borrowed money and interest is repaid in months when there is an excess cash balance. 25 26 Instructions: 27 1. Start with a schedule of cash collections for July and August to support the cash budget. (6 marks) 28 29 30 31 32 Sheet1 New