Sunny and Clear, Inc. is a small wholesale distributor of consumer goods. The company generates a gross margin shown in the blue table. The percent of cash sales is shown in the blue table; the remainder is sold on account and is collected one month later. Accounts receivable on June 30, 2020 are the result of June credit sales. Actual and budgeted sales for the period were as follows:

June(Actual)	$45,000
July	$52,000
August	$56,000
September	$60,000
October	$48,000

Gross Margin	23%
Cash Sales	26%
Ending Inventory	35%
Inventory Purchases Pain In Cash	48%
Other Expenses	8%

The company plans for each month's ending inventory to be the blue table percentage of the following month's budgeted cost of goods sold. Inventory cash purchases are shown in the blue table; the rest is paid for in the following month. The accounts payable on June 30 are the result of June purchases of inventory. All monthly expenses were paid monthly. Monthly expenses included: commissions, $9,000; rent, $1,200; other expenses (excluding depreciation), are reflected in the blue able as a percent of sales. Depreciation is $1,300 for the quarter and includes depreciation on new assets acquired during the quarter. The assets acquired for cash during the quarter included equipment of $2,100 in July and $3,000 in August. The company wishes to maintain a minimum cash balance of $3,000 at the end of each month. The company has a financing facility that allows the company to borrow in increments of $1,000 at the beginning of each month from a local bank, up to a total loan balance of $30,000. The interest rate on these loans is 1.5% per month, and interest is not compounded. The company, when able, repays the loan plus accumulated interest at the end of the quarter.

Additional Information

CURRENT ASSETS AS OF JUNE 30:
CASH	$4,000
Accounts receivable	$29,250
Inventory	$7,100
Buildings and equipment, net	102,550
Accounts Payable	$22,400
Capital stock	$99,000
Retained Earnings	$21,500

Required:

Using the data above, for quarter ending September 2020, prepare the following on the "Budget Schedules" tab:

a. The schedule of the expected cash collections

b. The merchandise purchases budget:

c. The schedule of expected cash disbursements merchandise purchases.

d. schedule of expected cash disbursement Selling and administrative expenses

e. The cash budget:

f. An absorption costing income statement, for the quarter ending September 2023

g. A balance sheet as of September 30, 2020

a) Schedule of Expected Cash Collections
	July	August	September	Total
Sales Revenue
Cash Collections
In the month of sale
In the 1st month after sale
Expected Cash Collections

B) Merchandise Purchase Budget
	July	August	September	Total
Sales Revenue
Gross Profit
Cost of Goods Sold
Ending Inventory
Cost of Material Needs
Beginning Inventory
Cost of Material Purchases

C) Schedule of Expected Cash Disbursments - Merchandise Purchases
	July	August	September	Total
Cost of Material Purchases
Cash Purchases
Current Month
Previous Month
Expected Cash Disbursments - Merchandise Purchases

D) Schedule of Expected Cash Disbursments - Selling and Administrative Expenses
	July	August	September	Total
Commission
Rent
Other Expenses
Expected Cash Disbursments - Selling and Admin.

E) Cash Budget
	July	August	September	Total
Opening Balance
Expected Cash Collections
Total Cash Available
Expected Cash Disbursments - Merchandise
Expected Cash Disbursments - S&A
Equipment
Cash Disbursments
Excess/Deficiency
Financing
Borrowing
Repayment
Interest
Ending Cash Balance

F) Sunny and Clear, Inc.
Absorbtion Costing Income Statement
For the Quarter Ended September 30, 2020
Sales Revenue
Cost of Goods Sold
Gross Margin
Selling and Administrative Expenses
Sales Commission
Rent
Other Expenses
Depreciation
Total S&A Expenses
Interest Expense
Net Loss

G) Sunny and Clear, Inc.
Balance Sheet
September 30, 2020
Assets
Cash
Accounts Receivable
Inventory
Equipment
Total Assets
Liabilities
Accounts Payable
Borrowings
Stockholder's Equity
Capital Stock
Retained Earnings
Total Stockholder's Equity
Total Liabilities and Stockholder's Equity