Complete cash budget $($LO$2)$ Archer Electronics Company's actual sales and purchases

for April and May are shown here along with forecasted sales and purchases for June

through September.

The company makes $10$ percent of its sales for cash and $90$ percent on credit. Of the

credit sales, $20$ percest are collected in the month after the sale and $80$ percent are collected

two months later. Archer pays for $40$ peroent of its purchases in the month after purchase

and $60$ percent two months after.

Labor expense oquals $10$ percent of the current month's sales. Overhead expense equali

$$12,000$ per monh. laterest payments of $$30,000$ are dve in June and September. A cash

dividend of $$50,000$ is scheduled to be paid in June. Tax payments of $$25,000$ are doe in

June and September. There is a scheduled eapital outlay of $$300,000$ is September.

Archer Electronics's ending cash balance in May is $$20,000.$ The minimum desired cask

balance is $$10,000.$ Prepare a schedule of monthly cash reoelpts, monthly cash payments,

and a complete monthly cash budget with borrowing and repuyments for June through

September. The maximum desired cash balance is $$$0,000.$ Fxcets cash $($above $$50,000)$ is

used to buy marketable securities$.$ Marketabie securities are sold before borrowing funds in

cas $\text{'}$ of a cash shortill $($fess than $$10,000).$