The Sun Pacific Company budgeted the following sales:

July 200,000

August 210,000

September 190,000

Sales in May were 190,000 and in June 180,000. 60% of sales are cash, 30% of sales are to be collected the next month, and the remaining 10% in 2 months.

Budgeted purchases of the required materials for production are:

July 100,000

August 105,000

September 95,000

Purchases in June were 90,000. 70% of purchases are cash and 30% should be paid the next month.

Direct Labor is 35% of purchases

Selling Expenses are 8% of sales

Other Fixed Expenses are $7,000 monthly

Taxes of $25,000 will be paid in September

Dividends of $20,000 will be paid in August

Sun Pacific has a loan with $100,000 outstanding balance in June

Interest expenses are 1% of the last month outstanding balance

The firm cash policy is to maintain a $25,000 ending cash balance (the ending balance in June was $25,000). Excess should be used to repay loans.

REQUIRED CALCULATE

Cash Sales in August

Cash receipts in July

Cash receipts in September

Cash payments in August

Cash payments in September

Loan outstanding balance in September

Interest payment in August

Preliminary Cash balance in September

Accounts payable for the next period (October)

If the company purchase a machine with a cost of $30,000 in September, does the company will need a loan