What are the formulas to solve the two following items:

• Schedule of Expected Cash Disbursements - Purchases
• Cash Budget

MUST LIKELT NUMBERS ANU ASSUMPTIUNS SALES MANAGER PRIVATE INFORMATION Most likely sales $ 600,000 $ August $10,000 September $475,000 $ October 385,000 Part 1 Information PURCHASING HAHAGER PRIYATE IHFORMATION Most likely cost of merchandise as a % of sales Desired ending inventory po percentage of next month's cost of sales 20% Part 1 Information 50% 80% = OPERATION HANAGER PRIYATE INFORHATION Most likely shipping expenses as a percent of sales Most likely other expenses as a percent of sales Salaries and wages per month Most likely advertising costs (per month Most likely insurance costs (per month Depreciation expense per month 85.000 50.000 3.000 - = 25,000 Part 1 Information FINAHCE HAHAGER PRIYATE INFORMATION Percent sales collected in month of sale Percent sales collected in month after sale e 3 30% 70% 50% 5 5 Percent of inventory purchase paid in month of purchase Percent of inventory purchae paid in month after purchase 50% 100% 3 e Percent of operating expended paid in month of purchase Percent of operating expender paid in month after purchase Desired minimum ending cash balance each month 2 Borrow in increments of 3 Monthly interest rate on borrowings (not compounded) 35,000 1.000 Other planned outlays of cash Capital expenditures Dividends August 30,000 September $ 200,000 50,000 $ $ SRS Educational Supply Company Balance Sheet Previous Year End 40,000 340,000 50.000 Current assets: - Cash B Accounts receivable e Inventory Prepaid insurance Total current assets Buildings and equipment inet) 3 TOTAL ASSETS 18.000 $448.000 $860.000 1308.000 Liabilities and Equity 130,000 - 3 e $ 130,000 Liabilites Accounts payable Noteo payable Total liabilities Stockholder's equity Capital stock Retained earnings Total equity TOTAL LIABILITIES AND EQUITY 420.000 750,000 e 3 1178.000 1.308.000 Instructions Milestone One Instructions Part II Assumptions Sales Budget July 600,000 $ August September 910,000 $ 475,000 $ Quarter 1,985,000 Sales $ Schedule of Cash Collections August September July Quarter 340,000 340,000 180,000 180,000 420,000 420,000 June sales (A/R From Beginning Balance Sheet) July sales - Collected in Current Month July sales - Collected in Following Month August sales - Collected in Current Month August sales - Collected in Following Month September sales - Collected in Current Month Total Expected Cash Collections 273,000 273,000 637,000 637,000 142,500 142,500 779,500 $ $ 520,000 $ 693.000 $ 1.992,500 Total Sales for the Quarter A/R at the end of the Quarter (September Sales Still not Collected) $ $ 1,985,000 332,500 $ Sales Cost of Merchandise as % of Sales Budgeted Cost of Merchandise Sold Inventory Purchase Budget July August September 600,000 $ 910,000 $ 475,000 $ 45% 45% 45% 270,000 $ 409,500 $ 213,750 $ October 385,000 45% 173.250 $ $ Following Month's COGS Desired Ending Inventory % Desired Ending Inventory Dollars 409,500 $ 20% 81.900 213,750 $ 20% 42.750 173,250 20% 34,650 Budgeted Cost of Merchandise Sold Plus Desired Ending Inventory Total Inventory Needs Less Beginning Inventory Required Purchases 270,000 81,900 351,900 (50,000) 301,900 $ 409,500 42,750 452,250 (81,900) 370,350 $ 213,750 34,650 248,400 (42,750) 205,650 $ Schedule of Expected Cash Disbursements - Purchases July August September June Purchases (A/P From Balance Sheet) $ 130,000 $ July Purchases $ 150,950 $ 150,950 $ August Purchases $ 185,175 $ 185,175 $ September Purchases $ 102,825 $ Total Disbursements $ 280,950 $ 336,125 $ 288,000 $ Quarter 130,000 301,900 370,350 102,825 905,075 Cost of Merchandise Sold for the Quarter Ending Inventory at the end of the Quarter Ending A/P at the end of the Quarter $ $ $ 893,250 34,650 102,825 $ Sales Shipping as a Percentage of Sales Other Expenses as a Percentage of Sales Selling and Administrative Budget July August September Quarter 600,000 $ 910,000 $ 475,000 $ 1,985,000 5% 5% 5% 8% 8% 8% 30,000 48,000 78,000 45,500 72,800 118,300 23,750 38,000 61,750 99,250 158,800 258,050 Variable Expenses: Shipping Other Expenses Total Variable Expenses Fixed Expenses: Salaries and Wages Advertising Prepaid Insurance Depreciation Total Fixed Expenses Total Selling and Admin Expenses 85,000 50,000 3,000 25,000 163,000 241,000 85,000 50,000 3,000 25,000 163,000 281,300 85,000 50,000 3,000 25,000 163,000 2 24,750 255,000 150,000 9,000 75,000 489,000 747,050 Less Noncash Items (Depreciation and Prepaid Ins) Total Cash Disbursements 28,000 213,000 28,000 253,300 28,000 196,750 84.000 663,050 Prepaid Insurance That Is Expensed During the Quarter Depreciation Expense Recognized During the Quarter $ $ 9,000 75,000 July 40,000 520.000 560,000 Cash Budget August September 35,050 35,435 693.000 779,500 728,050 814,935 Quarter 40,000 1,992,500 2,032,500 288,000 196,750 Cash Balance: Beginning Add Cash Collections (From Sales Budget) Total cash Available Less Cash Disbursements For Inventory (From Purchasing Budget) For Operating Expenses (From Selling and Admin Budget) For Equipment For Cash Dividends For Interest (From Previous Month's Borrowing) Total Cash Disbursements Excess (Deficiency) of Cash Financing Borrowing Repayment Total Financing Cash Balance: Ending 280,950 336,125 213,000 253,300 200,000 90,000 50,000 0 $ 2,190 743,950 681,615 (183,950) 46,435 905,075 663,050 290,000 50,000 4,270 1,912,395 120,105 $ 2,080 486,830 328,105 219,000 (219,000) 219,000 0 219,000 35,050 (11,000) (11,000) 35,435 (208,000) (208,000) 120,105 120,105 Outstanding Loan Balance Interest on Borrowing (Due the Following Quarter) 4,270 MUST LIKELT NUMBERS ANU ASSUMPTIUNS SALES MANAGER PRIVATE INFORMATION Most likely sales $ 600,000 $ August $10,000 September $475,000 $ October 385,000 Part 1 Information PURCHASING HAHAGER PRIYATE IHFORMATION Most likely cost of merchandise as a % of sales Desired ending inventory po percentage of next month's cost of sales 20% Part 1 Information 50% 80% = OPERATION HANAGER PRIYATE INFORHATION Most likely shipping expenses as a percent of sales Most likely other expenses as a percent of sales Salaries and wages per month Most likely advertising costs (per month Most likely insurance costs (per month Depreciation expense per month 85.000 50.000 3.000 - = 25,000 Part 1 Information FINAHCE HAHAGER PRIYATE INFORMATION Percent sales collected in month of sale Percent sales collected in month after sale e 3 30% 70% 50% 5 5 Percent of inventory purchase paid in month of purchase Percent of inventory purchae paid in month after purchase 50% 100% 3 e Percent of operating expended paid in month of purchase Percent of operating expender paid in month after purchase Desired minimum ending cash balance each month 2 Borrow in increments of 3 Monthly interest rate on borrowings (not compounded) 35,000 1.000 Other planned outlays of cash Capital expenditures Dividends August 30,000 September $ 200,000 50,000 $ $ SRS Educational Supply Company Balance Sheet Previous Year End 40,000 340,000 50.000 Current assets: - Cash B Accounts receivable e Inventory Prepaid insurance Total current assets Buildings and equipment inet) 3 TOTAL ASSETS 18.000 $448.000 $860.000 1308.000 Liabilities and Equity 130,000 - 3 e $ 130,000 Liabilites Accounts payable Noteo payable Total liabilities Stockholder's equity Capital stock Retained earnings Total equity TOTAL LIABILITIES AND EQUITY 420.000 750,000 e 3 1178.000 1.308.000 Instructions Milestone One Instructions Part II Assumptions Sales Budget July 600,000 $ August September 910,000 $ 475,000 $ Quarter 1,985,000 Sales $ Schedule of Cash Collections August September July Quarter 340,000 340,000 180,000 180,000 420,000 420,000 June sales (A/R From Beginning Balance Sheet) July sales - Collected in Current Month July sales - Collected in Following Month August sales - Collected in Current Month August sales - Collected in Following Month September sales - Collected in Current Month Total Expected Cash Collections 273,000 273,000 637,000 637,000 142,500 142,500 779,500 $ $ 520,000 $ 693.000 $ 1.992,500 Total Sales for the Quarter A/R at the end of the Quarter (September Sales Still not Collected) $ $ 1,985,000 332,500 $ Sales Cost of Merchandise as % of Sales Budgeted Cost of Merchandise Sold Inventory Purchase Budget July August September 600,000 $ 910,000 $ 475,000 $ 45% 45% 45% 270,000 $ 409,500 $ 213,750 $ October 385,000 45% 173.250 $ $ Following Month's COGS Desired Ending Inventory % Desired Ending Inventory Dollars 409,500 $ 20% 81.900 213,750 $ 20% 42.750 173,250 20% 34,650 Budgeted Cost of Merchandise Sold Plus Desired Ending Inventory Total Inventory Needs Less Beginning Inventory Required Purchases 270,000 81,900 351,900 (50,000) 301,900 $ 409,500 42,750 452,250 (81,900) 370,350 $ 213,750 34,650 248,400 (42,750) 205,650 $ Schedule of Expected Cash Disbursements - Purchases July August September June Purchases (A/P From Balance Sheet) $ 130,000 $ July Purchases $ 150,950 $ 150,950 $ August Purchases $ 185,175 $ 185,175 $ September Purchases $ 102,825 $ Total Disbursements $ 280,950 $ 336,125 $ 288,000 $ Quarter 130,000 301,900 370,350 102,825 905,075 Cost of Merchandise Sold for the Quarter Ending Inventory at the end of the Quarter Ending A/P at the end of the Quarter $ $ $ 893,250 34,650 102,825 $ Sales Shipping as a Percentage of Sales Other Expenses as a Percentage of Sales Selling and Administrative Budget July August September Quarter 600,000 $ 910,000 $ 475,000 $ 1,985,000 5% 5% 5% 8% 8% 8% 30,000 48,000 78,000 45,500 72,800 118,300 23,750 38,000 61,750 99,250 158,800 258,050 Variable Expenses: Shipping Other Expenses Total Variable Expenses Fixed Expenses: Salaries and Wages Advertising Prepaid Insurance Depreciation Total Fixed Expenses Total Selling and Admin Expenses 85,000 50,000 3,000 25,000 163,000 241,000 85,000 50,000 3,000 25,000 163,000 281,300 85,000 50,000 3,000 25,000 163,000 2 24,750 255,000 150,000 9,000 75,000 489,000 747,050 Less Noncash Items (Depreciation and Prepaid Ins) Total Cash Disbursements 28,000 213,000 28,000 253,300 28,000 196,750 84.000 663,050 Prepaid Insurance That Is Expensed During the Quarter Depreciation Expense Recognized During the Quarter $ $ 9,000 75,000 July 40,000 520.000 560,000 Cash Budget August September 35,050 35,435 693.000 779,500 728,050 814,935 Quarter 40,000 1,992,500 2,032,500 288,000 196,750 Cash Balance: Beginning Add Cash Collections (From Sales Budget) Total cash Available Less Cash Disbursements For Inventory (From Purchasing Budget) For Operating Expenses (From Selling and Admin Budget) For Equipment For Cash Dividends For Interest (From Previous Month's Borrowing) Total Cash Disbursements Excess (Deficiency) of Cash Financing Borrowing Repayment Total Financing Cash Balance: Ending 280,950 336,125 213,000 253,300 200,000 90,000 50,000 0 $ 2,190 743,950 681,615 (183,950) 46,435 905,075 663,050 290,000 50,000 4,270 1,912,395 120,105 $ 2,080 486,830 328,105 219,000 (219,000) 219,000 0 219,000 35,050 (11,000) (11,000) 35,435 (208,000) (208,000) 120,105 120,105 Outstanding Loan Balance Interest on Borrowing (Due the Following Quarter) 4,270