Required information Problem 14-21 (Algo) Cash budget-part 1 LO 14-4, 14-7 [The following information applies to the questions displayed below.] PrimeTime Sportswear is a custom imprinter that began operations six months ago. Sales have exceeded management's most optimistic projections. Sales are made on account and collected as follows: 52% in the month after the sale is made and 47% in the second month after sale. Merchandise purchases and operating expenses are paid as follows: In the month during which the merchandise is purchased or the cost is incurred In the subsequent month 71% 29% PrimeTime Sportswear's income statement budget for each of the next four months, newly revised to reflect the success of the firm, follows: $ 21,910 33,100 Sales July $ 42,800 August September $ 54,100 $ 67,800 October $ 58,600 Cost of goods sold: Beginning inventory Purchases $ 5,800 37,400 $ 14,380 44,000 $ 20,550 49,400 Cost of goods available for sale $ 43,200 Less: Ending inventory Cost of goods sold (14,380) $ 58,380 (20,550) $ 69,950 (21,910) Gross profit Operating expenses $ 28,820 $ 13,980 11,000 $ 37,830 $ 16,270 12,300 $ 2,980 $ 3,970 $ 4,960 Operating income $ 48,040 $ 19,760 14,800 $ 55,010 (20,090) $ 34,920 $ 23,680 16,300 $ 7,380 Cash on hand June 30 is estimated to be $40,390. Collections of June 30 accounts receivable were estimated to be $20,100 in July and $14,750 in August. Payments of June 30 accounts payable and accrued expenses in July were estimated to be $24,240. Problem 14-21 (Algo) Part a Required: a. Prepare a cash budget for July. Beginning cash Cash receipts: June 30 accounts receivable Total cash receipts Cash disbursements: July purchases July operating expenses June 30 accounts payable and accrued expenses Total cash disbursements Ending cash July $ 40,390 20,100 $ 20,100 $ 26,554 24,240 (58,604) $ (7,810) $ 52,680 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. Problem 14-23 (Algo) Cash budget LO 14-7 The monthly cash budgets for the first quarter of 2022 follow ($000 omitted) for Tuscano Manufacturing Company. A minimum cash balance of $21,000 is required to start each month, and a $50,000 line of credit has been arranged with a local bank at a 12% interest rate. Required: Calculate the missing amounts. (Hint: The total cash available includes collections from customers for all three months, plus the beginning cash balance from January 1, 2022.) Note: Enter your answers in thousands rounded to 2 decimal places. (i.e., 20,550 should be entered as 20.55). Use 360 days a year for calculations. Cash balance, beginning Add collections from customers Total cash available Less disbursements: Purchase of inventory Operating expenses Capital additions Payment of dividends Total disbursements Excess (deficiency) of cash available over disbursements Borrowings Repayments (including interest) Cash balance, ending January February March Total $ 26.00 $ 21.00 68.00 108.00 $ 94.00 $ 129.00 137.00 $ 158.00 $ 21.00 $ 26.00 313.00 $ 339.00 $ 50.00 $ 60.00 $ 31.00 40.00 49.00 25.00 $ 159.00 96.00 33.00 8.00 1.00 42.00 - 8.00 8.00 $ 114.00 $ 108.00 $ 83.00 $ 305.00 $ (20.00) $ 21.00 $ 75.00 $ 34.00 41.00 41.00 41.23 41.23 $ 21.00 $ 21.00 $ 32.77 32.77