The Tasty Chocolate Company is a merchandising company that sells boxes of assorted chocolates. The companys marketing department estimated sales and purchasing needs for the next three months. These figures follow:

(In Units)	October	November	December
Beginning Inventory	10,000	10,000	10,000
Merchandise Purchases	60,000	70,000	35,000
Sales	60,000	70,000	40,000
Ending Inventory	10,000	10,000	5,000

Units are sold for $12 each. One fourth of all sales are paid for in the month of sale and the balance is paid in the following month. Accounts receivable at September 30 totaled $450,000.

Disbursements for Purchases: Merchandise is purchased for $7 per unit. Half of the purchases are paid for in the month of the purchase and the remainder is paid in the month following the purchase. One half of these inventory purchases are paid in the month in which they are incurred and the balance will be paid in the following month. The accounts payable balance for purchases at September 30 is $230,000.

Operation Expenses: Operation expenses are paid for in the month incurred. Selling expenses are $20,000 in cash. Administrative expenses paid for in cash are expected to total $100,000 each month. Wages are $25,000 per month. Depreciation is $30,000 per month and is not included above. Cash at September 30 totaled $100,000.

Other: A payment of $90,000 for the purchase of equipment is scheduled for October, $148,000 for purchase of equipment is scheduled for November, and a dividend of $240,000 is to be paid in December.

Because of their shaky credit, interest is 12% (or 1% per month). Further, the company must maintain a minimum cash balance of $100,000. Borrowing and repayments must be in multiples of $5,000. Interest is paid only when loans are repaid.

Complete the following using a word processor and submit.

For the month of October, November & December you are to prepare the:

Schedule Of Expected Cash Collections

Inventory Purchase Budget (see production information in table)

Schedule Of Cash Disbursements For Purchases

Schedule Of Cash Disbursements For Expenses