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Westex Products is a wholesale distributor of industrial cleaning products. When the treasurer of Westex Products approached the company's bank late in the current year

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Westex Products is a wholesale distributor of industrial cleaning products. When the treasurer of Westex Products approached the company's bank late in the current year seeking short-term financing, he was told that money was very tight and that any borrowing over the next year would have to be supported by a detailed statement of cash collections and disbursements. The treasurer also was told that it would be very helpful to the bank if borrowers would indicate the quarters in which they would be needing funds, as well as the amounts that would be needed, and the quarters in which repayments could be me Enchuse the treasurer is unsure as to the particular quarters in which bank financing be needed, he has assembled the following information to assist in preparing a detailed cash budget Budgeted sales and merchandise purchases for next year, as well as actual sales and purchases for the last quarter of the current year, are: Merchandise Current Teen Toorth attractia Text year First quarter etted Snoond unter animated Third time Fourth Estimated $ 200.000 160.000 $400.000 1.500.000 1.200.000 $ 126,000 116,000 1 205,000 1305,000 $120.000 b. All sales are on account. The company normally collects 65% of quarter's sales before the quarter ends and another 33%. In the following quarter. The remainder is uncollectible. This pattern of collections is now being experienced in the current year's fourth- quarter actual data c. Elgnty percent of a quarter's merchandise purchases are paid for within the quarter. The remainder is paid for in the following quarter Seting and administrative expenses for next year are budgeted at $50,000 per quarter plus 15% of sales of the ed amount $20,000 charter is depreciation e. The company w pay $10,000 in dividends cochquarter Land purchases of 575.000 wil be made in the second quarter and purchases of $48.000 will be made in the third quarter. These purchases will be for cash g. The Cash account contained $10.000 the end of the current year. The treasurer foets that this represents a minimum balance that must be maintained The company's bank allows borrowing in increments of $1,000 at the beginning of each quarter, up to total loan balance of $100,000. Thenterest rate on these loans is 2.5% per quarter and for simplicity we will assume that interest is not compounded. The company would, as far as it is able repay the loan plus accumulated interest at the end of the year At present the company has no loans outstanding Required: Calculate the nected cash collections by quarter and into for next year

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