The following data relate to the operations of HASF Company a wholesale distributor of consumer goods Current assets as of March 31

Cash                                                                      48,000

A/c receivable                                                   224,000

Inventory                                                            60,000

Building and equipment net                        370,000

A/c payable                                                        93,000

Capital stock                                                       500,000

Retained earnings                                           109,000

1). Gross profit is 40% of sales

2). Actual and budgeted sales data

March                                                                   280,000

April                                                                       400,000

May                                                                       600,000

June                                                                      300,000

July                                                                        200,000

3). sales are 20% for cash and 80% on credit. Credit sales are collected in the month following sales

4). Each month ending inventory should equal to 25% of following month cost of goods sold

5). one half of a month ‘s inventory purchase is paid for in the month of purchase, other half is paid for in the month.

6). Monthly expense are follows

• Salaries and wages 27,000
• Advertising exp 70,000 per month
• Shipping , 5% of sales
• Depreciation 42,000 per quarter

Note these expenses are paid monthly

7). Equipment costing 1,700 will be purchase for cash in May, During June other equipment will be purchase for cash at cost 84,500

8). Management would like to maintain a minimum cash balance of at least 30,000 at the end of each month

9). the company has an agreement with a local bank that allows the company to borrow in the increments of 1,000 at the beginning of each month up to a total loan balance of 20,000. The interest rate on these loan is 1`% per month

10). During April company declare and pay 45, in cash dividends

Required

1. Income statement balance sheet
1. Using the preceding data compute, the following for April May June and total
• Schedule of expected cash collection
• Merchandise purchase budget
• Schedule of expected cash disbursements Merchandise purchase
• Schedule of expected cash disbursements for selling and administrative expense
• Cash budget