Sheffield, Inc. has budgeted sales revenues as follows: Credit sales Cash sales Total sales June June July August $142,000 96,000 $302,000 July $127,000 220,000 257,000 Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will be collected in the following month. Purchases of inventory are all on account with 50% is paid in the month of purchase and 50% paid in the month following purchase. Budgeted inventory purchases are as follows: 109,000 August $238,000 $384,000 $ 283,000 $ 90,000 193,000 Other cash disbursements budgeted: (a) selling and administrative expenses of $51,000 each month, (b) dividends of $110,000 will be paid in July, and (c) purchase of equipment in August for $40,000 cash. The company's policy is to maintain a minimum cash balance of $50,000 at the end of each month. The company borrows money from the bank at 6% interest if necessary to maintain the minimum cash balance. Borrowed money is repaid in months when there is an excess cash balance. The beginning cash balance on July 1 was $50,000. Assume that borrowed money in this case is for one month.

Sheffield, Inc. has budgeted sales revenues as follows: Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will be collected in the following month. Purchases of inventory are all on account with 50% is paid in the month of purchase and 50% paid in the month following purchase. Budgeted inventory purchases are as follows: Other cash disbursements budgeted: (a) selling and administrative expenses of $51,000 each month, (b) dividends of $110,000 will be paid in July, and (c) purchase of equipment in August for $40,000 cash. The company's policy is to maintain a minimum cash balance of $50,000 at the end of each month. The company borrows money from the bank at 6% interest if necessary to maintain the minimum cash balance. Borrowed money is repaid inmonths when there is an excess cash balance. The beginning cash balance on July 1 was $50,000. Assume that borrowed money in this case is for one month. Prepare separate,schedules for expected collections from customers and expected payments for purch leave any answer field blank. Enter O for amounts.) Schedule of Expected Collections from Customers Credit sales June July August Total collections July $ August August \$ Scheidule of Expected Payments for Purchases of Inventory Inventory purchases July August June July August