Wys REVIEW Vuw Help Search files from the Internet can contain vinuses Unless you need to edit, it's safer to stay in Protected View Enable Editing Problem 3) (16 marks) As the recently hired assistant to the controller of a plumbing supplies wholesaler, The Plumbing Warehouse, you have been asked to assist in the preparation of a cash budget for the last quarter of 2029. Specifically, your task is to prepare a cash budget for October 2029. Joe Jackson, the controller, will use your October 2029 cash budget in his preparation of the November and December cash budgets. The following information has been provided. The September 30, 2029, cash balance is $102,000 Budgeted sales for the last quarter of 2029 are: Month Sales October $2.120.000 November $2.220,000 December $2.050.000 The Plumbing Warehouse uses the accrual basis of accounting. The September 30, 2029 accounts receivable, net balance was $360,000. Assume that the $360,000 will be collected in October, 2029. . Collections from customers are expected to be 80% in the month of sale and 20% in the month following the sale. . Merchandise purchases expected to be paid in cash in each of October, November, and December are anticipated to be equal to 65% of that month's budgeted sales. . General and administrative expenses are projected to be S1.105,000 for the last quarter of 2029. The breakdown of these expenses is presented below. All expenditures are paid uniformly throughout the last quarter, except the property taxes, which are paid at the end of each quarter. Last Quarter 2029. Forecasted General & Administrative Costs Salaries & Fringe Benefit: Advertising Insurance Property Taxes Depreciation $555.000 $150.000 $90.000 $100.000 $84.000 O Nie er recevenerur O CIVITAVE LOSS Salaries & Fringe Benefits Advertising Insurance Property Taxes Depreciation Other $555,000 $150,000 $90,000 $100,000 $84.000 $126,000 $1,105,000 . Expected purchase of a delivery truck in November, 552,000. Cash dividends to be paid in October, S393,000. The Plumbing Warehouse desires to keep a minimum cash balance of $85,000, and has the ability to borrow amounts necessary to maintain this balance. Assume that borrowings take place at the beginning of the month, and repayments occur at the end of a month when there is sufficient cash to repay. Interest on borrowed money will be ignored. Required Prepare a cash budget for October 2029. listing the general & administrative expenses separately within the cash budget and indicate whether or not The Plumbing Warehouse will meet its minimum cash requirement. (15 marks) What is the expected November 2029 cash beginning balance? (1 mark) b) A *
