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The owner of a plumbing supply company has requested a cash budget for June. After examining the records of the company, you find the following:

The owner of a plumbing supply company has requested a cash budget for June. After examining the records of the company, you find the following:
Cash balance on June 1 is $1,386.
Actual sales for April and May are as follows:
Line Item Description April May
Cash sales $10,000 $18,000
Credit sales 28,90035,000
Total sales $38,900 $53,000
Credit sales are collected over a 3-month period: 30% in the month of sale, 40% in the second month, and 20% in the third month. The sales collected in the third month are subject to a 2% late fee, which is paid by those customers in addition to what they owe. The remaining sales are uncollectible.
Inventory purchases average 64% of a month's total sales. Of those purchases, 20% are paid for in the month of purchase. The remaining 80% are paid for in the following month.
Salaries and wages total $11,750 per month, including a $4,500 salary paid to the owner.
Rent is $5,000 per month.
Taxes to be paid in June are $6,780.
The owner also tells you that he expects cash sales of $18,600 and credit sales of $58,000 for June. No minimum cash balance is required. The owner of the company doesn't have access to short-term loans.
Prepare a cash budget for June. Include supporting schedules for cash collections and cash payments. Round calculations and final answers to the nearest
dollar. Be sure to enter percentages as whole numbers.
Cash Budget
For June
Beginning cash balance
Collections:
Cash sales
Credit sales:
Current month
May credit sales
April credit sales
Total cash available
Less disbursements:
Inventory purchases:
Current month
x
%
Prior month
fill in the blank 14 of 21$
\times fill in the blank 15 of 21
% fill in the blank 16 of 21
Salaries and wages fill in the blank 17 of 21
Rent fill in the blank 18 of 21
Taxes fill in the blank 19 of 21
Total cash needs fill in the blank 20 of 21
Excess of cash available over needs fill in the blank 21 of 21$
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