Question $2$

On $31$ December $2018,$ the Itami Wholesale Co$.$ is attempting to project cash receipts and disbursements through $31$ January $2019.$ On this latter date, a note will be payable in the amount of R$100000.$ This amount was borrowed in September to carry the company through the seasonal peak in November and December.

Selected General Ledger balances on $1$ December $2018$ are as follows:

$\backslash$table$[[,$Debit,Credit$],[$Cash$,$R$88000,],[$Inventory$,$R$65200,],[$Accounts payable,,R$136000]]$

Sales terms call for a $30\%$ discount if payment is made within the first $10$ days of the month after sales, with the balance due by the end of the month after sale. Experience has shown that $50\%$ of the billings will be collected within the discount period, $30\%$ by the end of the month after purchase, and $14\%$ in the following month. The remaining $6\%$ will be uncollectable. There are no cash sales.

The average selling price of the company's products is R$100$ per unit. Actual and projected sales are as follows:

$\backslash$table$[[$October actual,R$280000],[$November actual,R$320000],[$December estimated,R$330000],[$January estimated,R$250000],[$February estimated,R$240000],[$Total estimated for year ending $30$ June $2019,$R$2400000]]$

All purchases are payable within $15$ days. Approximately $60\%$ of the purchases in a month are paid that month, and the rest the following month. The average unit purchase cost is R$80.$ Target ending inventories are $500$ units plus $10\%$ of the month's unit sales.

Total budgeted marketing, distribution, and customer$-$service costs for the year are R$600000.$ Of this amount, R$120000$ are considered fixed $($and include depreciation of R$30000).$ The remainder varies with sales. Both fixed and variable marketing, distribution and customerservice costs are paid as incurred.

Required:

$2\mathrm{.}1$ Prepare a cash budget for December $2018$ and January $2019.$ Supply supporting schedules for collections of receivable; payments for merchandise; and marketing, distribution and customer$-$service costs.