SAVE YOUR WORK Kerwin Inc. In the final stages of preparing its master budget for 2011 2 Required 1 The following data has been provided regarding sales and the expected collection patterne Budgeted sales: Budgeted sales in units Sales in dollars March April Me 18,000 19,000 21,500 72.500 $144.000 $152.000 52.00 500.00 6 7 8 9 10 11 12 13 14 15 16 17 Cash sales Credit sales (sales on account) 40% 60% The collection pattern for the credit sales has traditionally been as follows: 70% 20% 10% Month of sale First month following sale Second month following sale 18 19 Calculate the total expected cash collections for the month of June. (5 marks) 20 21 22 23 24 25 26 27 Kerwin Inc. Schedule of Expected Cash Collections For the Month ending June 30, 2021 Total expected cash collections for June 2. 35 What would be the budgeted value of the accounts receivable on the June 30th balance sheet (statement and marks) 36 37 38 39 40 41 Accounts receivable, June 30 3. The following additional information has been provided: a) Inventory purchases are budgeted as follows: 42 43 March April May June $109,200 $117.000 $130,700 $134.40 44 Inventory purchases 45 46 Inventory purchases are paid for in the following month. 47 48 b) Monthly expenses are budgeted as follows: $20,800 per month $21,000 per month $28,000 per month 10% of sales $13,500 49 50 51 52 53 54 55 56 Salaries (all paid in the current month) Utilities (all paid in the current month) Depreciation Sales commissions (paid in the current month) Advertising c) The company will purchase and pay for equipment in following months: 4 New... ASUS VivoBook CHORED SAVE YOUR WORK d) Cash dividends in the amount of $16,000 are paid in February. May put, und obes. These they last few years 60 Prepare the cash budget for June and determine if there is an excess of a deficiency. The began to $10,000. (11 marks) Kerwin Inc. Cash Budget For the Month ending June 30, 2021 Beginning cash balance Total cash available 60 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 Excess (deficiency) The company must maintain a minimum cash balance of $7,000 each month. Money is borrowed at the beginning of the month. There are no loans currently outstanding. Interest is paid in the following month and the rate is 12% per year. Based on this ition and the final answer for part 3, determine the amount that needs to be borrowed, not including interest, to ensure ASUS VivoBook CHITO LAME YOUR WORK The company must maintain a minimum cash balance of $7,000 each month. Money is borrowed the brother There are no loans currently outstanding. Interest is paid in the following month and the rate is 12% per poded on this information and the final answer for part 3, determine the amount that needs to be borrowed, no duding that there is at least $7,000 on hand at the end of June. If no borrowing is required, Indicate this and provide an appropria explanation why (2 marks) 16 8 Amount to be borrowed New ASUS VivoBook ating Accounts receivable, June 30 3. The following additional Information has been provided: a) Inventory purchases are budgeted as follows: Inventory purchases March April May June $109,200 $117.000 $130.200 $134.400 Inventory purchases are paid for in the following month. b) Monthly expenses are budgeted as follows: Salaries (all paid in the current month) Utilities (all paid in the current month) Depreciation Sales commissions (paid in the current month) Advertising $20,800 per month $21,000 per month $28,000 per month 10% of sales $13,500 c) The company will purchase and pay for equipment in following months: $30,000 $15,000 March May d) Cash dividends in the amount of $16,000 are paid in February, May, August, and November. This has been the policy for last few years. Prepare the cash budget for June and determine if there is an excess or a deficiency. The beginning cash balance for lur Budgeting New ASUS VivoBook GO March $30,000 May $15,000 d) Cash dividends in the amount of $16,000 are paid in February, May, August, and November. This has been the policy for the last few years. 62 63 Prepare the cash budget for June and determine if there is an excess or a deficiency. The beginning each balance for une is $10,000. (11 marks) 64 65 Kerwin Inc. Cash Budget For the Month ending June 30, 2021 Beginning cash balance 66 67 68 69 70 71 72 73 74 75 Total cash available 76 77 78 79 80 81 82 ga Excess (deficiency) oBook