Required: Create a cash budget for July, August and September. Also make a budgeted balance sheet for Sept 30, 2021.

Check Figures: Projected Cash at the end of September $137,600 Total Assets $251,864

r Petra Paddles Company is budgeting for Quarter 3 (July, August and September). These are busy months, so it is important to get the numbers right and to come up with a good plan. This company sells kayaks and does 4-hour Kayak tours. Petra charges $120 for tours and kayaks are sold as a package for $3,000 each (include s a life jacket, a paddle, safety gear and the kayak). Based on last year's sales, Pet ra estimates that she will sell 12 kayaks in July, 7 in August and 5 in September. All of these are expected to be cash sales. Each kayak package costs $2,700. Every year, a large group of 20 people returns for a tour in July. This group has alr eady prepaid for their booking. This tour and all other projected bookings are inclu ded below: Septembe July August 445+20 Budgeted number of tours to complete =465 400 250 50% of all regular tours, excluding the group booking, are made through booking companies (Hotwire, Expedia, etc.) and will be collected in the month following the tour date. In July and August, Petra will have 6 employees. Each will be scheduled to work 40 hours per week (assume 4 week s in each month). Two of the employees make $20 per hour, the others make $15 per hour. Staff will be reduced co nsiderably in September and she only expects to spend $5,000 in wages for that month. Each guest on a kayak tour gets a packed lunch. Starting in July, Yummy Bakery Company will supply all required unches for $20 each. Petra will pay for 30% of the lunches in the month of purchase and the remainder in the follo wing month. The washrooms in the shop are dismal and guests have been complaining, so Petra has decided to purchase a port able washroom. This trailer, pictured below, will cost $25,400. Although she has already ordered it, she will receive i t in August. She plans to pay $5,000 cash, financing the rest with a 5% note, due in 3 years. Depreciation on the kayak equipment used for tours is $1,771 per month and depreciation on the new toilets will be $200 per month. Rent of $4,000 is paid at the beginning of each month. Petra's Balance Sheet at the end of June is projected as follows: Proforma Balance Sheet 30-Jun-21 $4,000 18,000 36,000 72,900 $67,500 23,023 Assets Cash Accounts Receivable Prepaid Insurance 12 month policy) Merchandise Inventory Kayak Equipment Less: Accumulated Depreciation Total Assets Liabilities & Equity Liabilities Unearned Revenue Equity Common Shares Retained Earnings Total Liabilities & Equity 44,477 175,377 2,400 75,000 97,977 175,377 July August September Cash Budget Beginning Cash Cash Receipts Hint: Watch out there are timing differ ences both with accounts receivable a nd accounts payable Total Cash Available Cash Disbursements Total Cash Disbursements Ending Cash Hint: think about when we would receive the $18,000 accounts receivable from the balance sheet Pro Forma Balance Sheet 30-Sep-21 Assets Total Assets Liabilities & Equity Liabilities Equity Hint: Liabilities have totally changed. There are now 3 liabilities. Total Equity Total Liabilities & Equity