You are responsible for preparing a cash budget for Country Quilts and have collected the following detalls:

a$.$ The cash balance on September $1$ is $$46,000$

b$.$ Actual sales for July and August and budgeted sales for September are shown below. Sales on account are collected over a three$-$

month perlod as follows: $20\%$ collected in the month of sale, $60\%$ collected in the month following sale, and $20\%$ collected in the

second month following sale. The company's bad debts are negligible.

c$.$ Purchases of Inventory will total $$352,000$ for September. Forty percent of a month's inventory purchases are pald during the month

of purchase. The accounts payable remaining from August's inventory purchases total $$209,000,$ all of which will be pald in

September.

d$.$ Selling and administrative expenses are budgeted at $$505,000$ for September. Of this amount, $$60,7001$ for depreciation and

$$550$is for property taxes.

e$.$ Annual property taxes of $$102,000$ will be paid during September.

f$.$ The company maintains a minimum cash balance of $$20,000.$ An open line of credit is avallable from the company's bank to bolster

the cash position as needed. All borrowing occurs at the beginning of a month.

Required:

Prepare a schedule of expected cash collections for September.Cash Budget

For the Month of December

issume that in October, Country Quilts has exactly the same collections from customers and cash disbursements as budgeted for

ieptember. Complete the financing section of the October cash budget. The Interest rate on the line of credit is $0\mathrm{.}5\%$ per month.