Sales Merchandise Purchases Current Year: Fourth quarter actual Next year: $ 200,000 $ 126,000 First quarter estimated $ 300,000 $ 186,000 Second quarter estimated $ 400,000 $ 246,000 Third quarter estimated $ 500,000 $ 305,000 $ 200,000 $ 126,000 Fourth quarter estinated b. All sales are on account. The company normally collects 65% of a quarter's sales before the quarter ends and another 33% In the following quarter. The remainder is uncollectible. This pattern of collections is now being experienced in the current year's fourth- quarter actual data. c. Eighty percent of a quarter's merchandise purchases are paid for within the quarter. The remainder is paid for in the following quarter. d. Selling and administrative expenses for next year are budgeted at $50,000 per quarter plus 15% of sales. Of the fixed amount, $20,000 each quarter is depreciation. e. The company will pay $10,000 in dividends each quarter. f. Land purchases of $75,000 will be made in the second quarter, and purchases of $48,000 will be made in the third quarter. These purchases will be for cash. g. The Cash account contained $10,000 at the end of the current year. The treasurer feels that this represents a minimum balance that must be maintained. h. The company's bank allows borrowing in Increments of $1,000 at the beginning of each quarter, up to a total loan balance of $100,000. The Interest rate on these loans Is 2.5% per quarter and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the year. 1. At present, the company has no loans outstanding. Required: 1. Calculate the expected cash collections by quarter and in total for next year. 2. Calculate the expected cash disbursements for merchandise purchases by quarter and in total for next year. 3. Calculate the expected cash disbursements for selling and administrative expenses, by quarter and in total for next year. 4. Prepare a cash budget by quarter and in total for next year. Complete this question by entering your answers in the tabs below. Req 1 and 2 Required 3 Required 4 Prepare a cash budget by quarter and in total for next year. (Cash deficiency, repayments and interest should be indicated by a minus sign.) Beginning cash balance Add collections from customers Total cash available Less disbursements: Merchandise purchases Selling and administrative expenses Dividends Land Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest Total financing Ending cash balance Westex Products Cash Budget Quarter First Second Third Fourth Year 0 0 0 0 0 0 0 0 0 0 13 13 13 13 13 0 0 0 0 0 S 13 S 13 $ 13 S 13 S 13