the nel Pattinon lectronics store Top management of Pation Electronics is convinced that management training should include the active participation of store managers in the busing proces You have and August A ccounting is done centrally so you have no expert help on the premises. In addition tomorrow the branch manager and the assistant controller e here to any document The idea is to have you prepare the budget on you that you a r e confidence about accounting matters You want to make a favorable impression on your superiors, so you gather theo May 31, 20X6 the icon to view the data) (Click the icon to view the additional information) Re t . Prepare a budgeted income statement for the coming June through August quarter a cash budget for each of the next three months, and a budgeted balance sheet for August 31, 20x8. All operations are evaluated on a before come taxe may be ignored here on we prepared the budgeted income statements Cashbudgets, and budgeted balance sheet les prepare a sales budget, a schedule of cash collections from customers, a purchases budget, a schedule of cash disbursements for purchases, and a schedule of pering expenses and disbursements for expenses (except interest Begin by preparing the sales budget for the June through August quarter Schedule Sales budget June July August Credh sales Total sales Now prepare a schedule of cash collections from customers Schedule : Cash collections from customers For current months For sales from 1 month prior For sales from 2 months prio Total colections from customers Enter any number in the ed elds and then continue to the next question Pattison Electronics is convinced that management training should include the active participation a y so you have no expert help on the premises. In addition, tomorrow the branch manager and the a set on your own so that you gain more confidence about accounting matters. You want to make a fav More Info Credit sales are 70% of total sales. Eighty percent of each credit account is collected in the month following the sale and the remaining 20% is collected in the subsequent month. Assume that bad Idebts are negligible and can be ignored The accounts receivable on May 31 are the result of the credit sales for April and May (0.20 x 0.70 x $140,000) + (1.0 x 0.70 x $170.000) = $138 600. The policy is to acquire enough inventory each month to equal the following month's projected cost of goods sold. All purchases are paid for in the month following purchase. The average gross profit on sales is 33%. Salaries, wages and commissions average 25% of sales, all other variable expenses are 3% of sales Fixed expenses for rent property taxes, and miscellaneous payroll and other items are $8,000 monthly. Assume that these variable and fixed expenses require cash disbursements each month Depreciation is $800 monthly In June. $15.000 is going to be disbursed for fixtures acquired and recorded in furniture and fixtures in May The May 31 balance of accounts payable includes this amount. Assume that a minimum cash balance of $4.000 is to be maintained. Also assume that all borrowings repayment. Interest is compounded and added to the outstanding balance each month, but interest is paid only at the ends of months when principal is repaid. The interest rate is 8% per annum, round interest computations and interest payments to the nearest dollar. Interest payments may be any dollar amount, but all borrowing and repayments of principal are made in multiples of $1.000. Data Table - X for A Cash thase Inventory Accounts receivable 15,100 Recent and Projected Sales 154,100 April $ 140,000 138,600 May 170,000 230,000 Net furniture and fixtures 40,000 June $ Total assets 347,800 July 180,000 180,000 169,100 August Accounts payable Owners' equity Total liabilities 178,700 September 130,000 $ 347.800 and owners' equities Print Done Mullayers in the bu w wie branch manager and the assistant controller will be NUDI vuuyer on your own so that you gain more confidence about accounting matters. You want to make a favorable imm LUULE UN lick the icon to view the additional information.) i Data Table aming June through Augus - X for August 31, 20X8. All operati ets, and budgeted balang erest.) Begin by preparing a Requirements X ases budget, a schedule of ca August Prepare a budgeted income statement for the coming June August quarter, a cash budget for each of the next 3 months, and a budgeted balance sheet for August 31, 20X8. All operations are evaluated on a before-inconte-tax basis, so income taxes may be ignored here. 2. Explain why there is a need for a bank loan and what operating sources supply cash for repaying the bank loan. Print Done July Print Done next