Randall Company is a merchandising company that sells a single product. The company's inventories, production, and sales in units for the next three months have been forecasted as follows:

	October			November			December
Beginning inventory		14,000			14,000			14,000
Merchandise purchases		53,000			63,000			38,000
Sales		54,000			63,000			42,000
Ending inventory		14,000			14,000			10,000

Units are sold for $23 each.

One fourth of all sales are paid for in the month of sale and the balance are paid for in the following month. Accounts receivable at September 30 totaled $914,250.

Merchandise is purchased for $14 per unit.

Half of the purchases are paid for in the month of the purchase and the remainder are paid for in the month following purchase.

Selling and administrative expenses are expected to total $106,000 each month. One half of these expenses will be paid in the month in which they are incurred and the balance will be paid in the following month.

There is no depreciation.

Accounts payable at September 30 totaled $378,000 (It includes the unpaid amount of Selling and administrative expenses).

Cash at September 30 totaled $48,000.

A payment of $510,000 for purchase of equipment is scheduled for November, and a dividend of $340,000 is to be paid in December.

Required:

a.

Prepare a schedule of expected cash collections for each of the months of October, November, and December.

Randall Company Schedule of Expected Cash Collections
	October	November	December
Sales	$	$	$
September accounts receivable	$	$	$
October sales
November sales
December sales
Total cash collections	$	$	$

b.	Prepare a schedule showing expected cash disbursements for merchandise purchases and selling and administrative expenses for each of the months October, November, and December.

Randall Company Schedule of Expected Cash Disbursements
	October	November	December
(Click to select)CashDisbursements, previous monthSalesMerchandise purchasesDisbursements, current month	$	$	$
(Click to select)Selling and administrative expensesDisbursements, current monthDisbursements, previous monthSalesAccounts payable
Total incurred	$	$	$
(Click to select)SalesDisbursements, previous monthAccounts payableMerchandise purchasesSelling and adminstrative expenses	$	$	$
(Click to select)Disbursements, current monthAccounts receivableSelling and adminstrative expensesCashMerchandise purchases
Total	$	$	$

c.	Prepare a cash budget for each of the months October, November, and December. There is no minimum required ending cash balance. (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values.)

Randall Company Cash budget
	October	November	December
Cash balance, beginning	$	$	$
Add cash receipts
Total cash available
Disbursements:
Accounts payable
Payment for equipment
Payment of dividend
Total disbursements
Cash balance, ending	$	$	$