[Short-Term Financial Planning) The PDC Company was described earlier in this chapter. Refer to the PDC Company's projected thonthly operating schedules in Table 6.2. PDC'S sales are projected to be $80,000 in September 2020. A. Prepare PDC's sales schedule, purchases schedule, and wages schedule for August 2020. B. Prepare a cash budget for August 2020 for PDC and describe how the forecast affects the end-of-month cash balance. Table 6.2 PDC Company Operating Schedules and Cash Budget (A) SALES SCHEDULE MARCH MAY JULY AUGUST APRIL TO JULY 552,000 Schedule 1: Sales Forecast 92,000 APRIL 115,000 46,000 69,000 92,000 36,800 55,200 Credit sales, 40% Cash sales, 60% JUNE 138,000 55,200 82,800 184,000 73,600 110,400 115,000 46,000 69,000 Schedule 2: Cash Collections Cash sales this month 100% of last month's credit sales 69,000 110,400 82,800 69,000 36,800 73,600 46,000 156,400 55,200 124,200 Total collections 105,800 156,400 (B) PURCHASES SCHEDULE APRIL TO JULY MARCH APRIL MAY JUNE JULY Schedule 3: Purchases 110,400 123,280 128,800 96,600 386,400 Ending inventory Cost of goods sold Total needed Beginning inventory Purchases 110,400 64,400 174,800 -97,520 77,280 149,040 80,500 229,540 -10,400 119,140 252,080 -9,040 103,040 207,000 -23,280 83,720 97,520 80,500 178,020 -10,400 67,620 Schedule 4: Purchase Disbursements 50% of last month's purchases 50% of this month's purchases Disbursements for purchases 38,640 59,570 98,210 59,570 51,520 111,090 51,520 41,860 41,860 33,810 75,670 93,380 (C) WAGES AND COMMISSIONS SCHEDULE APRIL TO JULY MARCH APRIL MAY JUNE JULY 5,750 5,750 5,750 5,750 5,750 Schedule 5: Wages and Commissions Wages, all fixed Commissions (15% of current sales) Total 20,700 17,250 13,800 19,550 17,250 23,000 27,600 33,350 26,450 23,000 105,800 Schedule 6: Disbursements- Wages and Commissions 50% of last month's expenses 50% of this month's expenses Total 9,775 11,500 11,500 16,675 16,675 13,225 29,900 13,225 11,500 24,725 21,275 28,175