Seager Company budgeted the following credit sales during the current year: September, $100,000; October, $120,000; November, $110,000; December, $111,000. Experience has shown that cash from credit sales is received as follows: 10% in the month of sale, 60% in the first month after sale, 25% in the second month after sale, and 5% is uncollectible. How much cash should Seager Co. expect to collect in November from all current and past credit sales. (1 point). Check: Cash collected in November should be greater than $100,000 but less than $110,000.

5. Billy Yang, Inc. is preparing a cash budget for the second quarter. The following amounts have been budgeted.

	April	May
Sales	$150,000	$157,500
Merchandise purchases	107,000	110,000
Operating expenses:
Payroll	13,000	14,000
Advertising	5,400	5,000
Rent	2,600	2,600
Depreciation	7,500	7,500
End of April balances:
Cash	25,000
Bank loan payable	30,000

Additional data: (1) Sales are 40% cash and 60% credit. The collection pattern for credit sales is 50% in the month following the sale and 50% in the month thereafter. Total sales in March were $120,000. (2) Purchases are all on credit, with 40% paid in the month of purchase and the balance paid in the following month. (3) Operating expenses are paid in the month they are incurred. (4) A minimum cash balance of $25,000 is required at the end of each month. (5) Loans are used to maintain the minimum cash balance. At the end of each month, interest of 1% per month is paid on the outstanding loan balance as of the beginning of the month. Loan repayments are made whenever excess cash is available (cash in excess of $25,000). Prepare the company's cash budget for the month of May. Show the ending loan balance at May 31. You must use the template on the next page. (6 points) Checks: Preliminary cash balance should be a number between $38,300 and $40,300. Loan balance at the end of the month should be $16,100.

Billy Yang, Inc Cash Budget For the Month of May

Beginning cash balance $

Cash receipts from sales (a) $

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Beginning cash plus cash receipts $

Cash disbursements:

Payments for merchandise (b) $

Other (List each item by name and amount):

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Total cash disbursements (above) $

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= Preliminary cash balance $

Less loan repayment $

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= Calculated cash balance, ending $

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Updated loan balance, end of month of May $

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Show work for all numbers above or below. Make sure you show how you calculated a) cash receipts from sales and b) payments for merchandise and all other calculated numbers.