uestion # 6 (17 marks) Bud Gallant Company is a large retail firm whose sales are in Cash & on Account. Based on experience, the collection pattern of Accounts Receivable is as follows: 80% 15% Uncollectible Actual Sales for June 2017 and Budgeted Sales for the next four months are: $400,000 500,000 September... 800,000 300,000 60% of Gallant's Sales are in Cash Gallant's Gross Profit Margin is 30%. Hint The , the rest are on Account. . buys In ired Mer $280,000 All Purchases are on account Gallant pays for 60% of a month's Purchases in the month of Purchase and the remainder in the month following Purchase. Gallant is required from Aug onward to maintain a minimum Cash balance at all times of $90,000. The beginning Cash balance on July 1t was $50,000. eflngmthly Operating Expenseseuahidincurred by Gallant JULY AUG 15,000 20,000 SEPT Sales Commissions (6% of Sales) Rent Insurance 15,000 5,000 20,000 110,000 15,000 5,000 20,000 Salarics 110 Reguired Calculate the amount of Cash receipts/Cash collections that Gallant can expect July 2017 only. (4 marks JULY ooot 035 Prepare the Inventory Purchases Budget for July-September (6marks) Prepare Gallant's Cash Budget for July 2017. (Be sure to include Cash collections, Cash payments for Expenses and Purchase of Inventory... and any borrowings) (7 marks)