Sutter, Inc. is a wholesaler for its only product, deluxe wireless rechargeable electric shavers, which sell for $73 each and cost Sutter $51 each. On June 1, 2016. Sutter's management requested a cash budget for June. The following selected account balances at May 31, 2016, were gathered by the accounting department: Cash $56,000 Marketable securities (at cost) 160,000 Accounts receivable (all trade) 2,170,000 Inventories (12,000 units) 612,000 Operating expenses payable 196,800 Accounts payable (all merchandise) 902,400 Note payable (due 12/31/2016) 600,000 Actual sales for April and May were 30,000 and 50,000 units, respectively. Projected unit sales for June and July are 40,000 and 20,000, respectively. Experience indicates that 50% of sales should be collected in the month of sale, 30% in the month following sale, and the balance in the second month following sale. Uncollectible accounts, returns and allowances are negligible. Planned purchases should provide ending inventories equal to 30% of next month's unit sales volume. Approximately 60% of the purchases are paid for in the month of purchase and the balance in the following month. Monthly operating expenses are budgeted at $8.70 per unit sold plus a fixed amount of $288,000 including depreciation of $112,000. Except for depreciation, 70% of operating expenses are paid in the month incurred and the balance in the following month. Interest expense is included in operating expenses. Special anticipated June transactions include the following: 1. Declaration of a $60,000 cash dividend to be paid 2 weeks after the June 20 date of record. 2. Sale of all but $40,000 of the marketable securities held on May 31 a gain of $18,000 is anticipated. 3. Payment of $50,000 installment on the note payable. 4. Trade-in of an old company plane originally costing $300,000 and now having accumulated depreciation of $200,000 at a gain of $160,000 on a new plane costing $2,060,000. Sufficient cash will be paid at the time of trade-in so that only 50% of the total price will have to be financed. Type here to search $2,060,000. Sufficient cash will be paid at the time of trade-in so that only 50% of the total price will have to be financed. 5. Sutter's treasurer has a policy of maintaining a minimum month-end cash balance of $40,000 and has a standing arrangement with the bank to borrow any amount up to a limit of $400,000 Prepare a cash budget for Sutter, Inc., for June 2016. Collections in June from customers: From April sales S From May sales From June sales Total collections s Payments on account for merchandise purchases: May June Unit Sales Ending inventories Total units to be available Beginning inventories Units to be purchased Total dollar purchases 5 Portion paid in June s Payment of operating expenses: May June Total variable operating expenses Payment of operating expenses: May June $ Total variable operating expenses $ Fixed operating expenses Total operating expenses Monthly depreciation Operating expenses requiring payment $ Amounts to be paid in June $ $ $ Cash required at time of plane purchase: $ Cost of new plane Book value of old plane Gain on trade-in $ Total trade-in allowance Balance owing at trade-in Portion to be financed Cash payment required w Sutter, Inc. Cash Budget For the Month Ended June 30, 2016 Beginning cash balance Cash receipts: Collections from customers (calculated above) $ Collections from customers (calculated above) Short-term borrowing Cash available Cash disbursements: Payments on accounts payable (calculated above) Payments of operating expenses payable (calculated above) Payment on airplane (calculated above) Total cash disbursements Ending cash balance $