FIN1013 - Term Test #2 - PART #2 - 2023F Lambton College of Applied Arts and Technology Financial Analysis and Budgeting FIN1013 Term Test #2 - PART #2 Fall 2023 Instructions: his 1.) The time deadline for submission of your completed answers to this part of the test into the Dropbox in D2L is 3:30pm. This includes time for all necessary processing and submission procedures. If your answers are not submitted by 3:30pm, your test grade will be subject to penalties as communicated previously. 2.) All answers are to be provided hand-written on pages separate from the test paper that have been scanned to a single PDF file for submission. There is an answer working paper package provided. You may use it or your own working papers so long as they are clearly labelled. 3.) Your answers should be organized and clearly labelled. It is important to show your calculations where applicable. 4 . ) Please ensure that your name and student number is clearly written on your submitted answers. Good Luck! Search

FIN 1013 - Term Test #2 -PART #2 - 2023F Question (14 Marks) Consider the following information that will assist you in preparing a cash budget for WILBEN COMPANY for the month of August: The cash balance on August 1" is expected to be $3,200. June July August Revenue from sales $35,000 $30,000 $45,000 Purchases (merchandise) $21,000 $18,000 $27,000 Traditionally, 80% of all sales are cash sales collected in the same month as the sale; and 15% of all sales are collected one month following the sale; and the remaining 5% of all sales are collected two months following the sale. Also, 65% of the purchases of merchandise are paid for in the same month as the purchase; the remaining 35% of the purchases are paid for in the month following the purchase. The following expenses are expected to be incurred in the month of August: Salaries $14,000 Advertising 4,000 Depreciation 1 1,000 Rent .. 6,000 Additional Information: The company pays a commission to their sales manager equal to 7% of monthly sales revenue. The commission is paid in the month following the month to which it relates. The company has purchased a new insurance policy with a total annual cost of $1,440. The insurance contract calls for this to be paid in equal monthly installments. The company plans on purchasing a new computer system for $10,000. The full amount will be paid in September. However, in August, the company plans on selling their old computer system for $3,000 cash proceeds. Required: Prepare a Cash Budget for WILBEN COMPANY for the month of AUGUST. Note: Provide your answer on the cash budget worksheet provided in your answer package or on your own working paper. **Supporting calculations (where applicable) MUST be shown for amounts reported on your cash budget. Failure to do so, will result in lost marks. 

Term Test #2 - 2023F - Answer Working Papers CASH BUDGET Estimated Cash Receipts: Total Cash Receipts for Month Estimated Cash Disbursements: Total Cash Disbursements for Month $ Total Surplus (Deficiency) of Cash for Month Cash Balance at Beginning of Month Cash Balance at End of Month Search