it View History Bookmarks Window Help ezto.mheducation.com C HOMEWORK Save Required 1 Required 2 Prepare a cash budget, by month and in total, for the three-month period. (Cash deficiency, repayments and interest should be indicated by a minus sign.) Prime Products Cash Budget Book April May June Quarter Print Beginning cash balance references Add receipts: Collections from customers Total cash available Less cash disbursements: Merchandise purchases Payroll Lease payments Advertising Equipment purchases Total cash disbursements Evrace /definiannul of rach available nwar dichlineamante Mc ... 20 ? BE - A TOM FORDView History Bookmarks Window Help ezto.mheducation.com OMEWORK i Saved Help Required: 1. Calculate the expected cash collections for April, May, and June, and for the three months in total. 2. Prepare a cash budget, by month and in total, for the three-month period. Complete this question by entering your answers in the tabs below. Book Print Required 1 Required 2 ferences Calculate the expected cash collections for April, May, and June, and for the three months in total. Schedule of Expected Cash Collections April May June Quarter Total cash collections Required 1 Required 2 > Mc ... 20 A TOM FORDit View History Bookmarks Window Help ezto.mheducation.com HOMEWORK Saved Help Save & Exi Check The president of the retailer Prime Products has just approached the company's bank with a request for a $73,000, 90-day loan, The purpose of the loan is to assist the company in acquiring inventories. Because the company has had some difficulty in paying off its loans in the past, the loan officer has asked for a cash budget to help determine whether the loan should be made. The following data are available for the months April through June, during which the loan will be used: a. On April 1, the start of the loan period, the cash balance will be $41,800. Accounts receivable on April 1 will total $182,000, of which $156,000 will be collected during April and $20,800 will be collected during May. The remainder will be uncollectible. Book b. Past experience shows that 30% of a month's sales are collected in the month of sale, 60% in the month following sale, and 8% in the second month following sale. The other 2% is bad debts that are never collected. Budgeted sales and expenses for the three- Print month period follow: eferences April May June Sales (all on account) $ 316, 000 $ 575, 000 $ 264, 000 Merchandise purchases 214, 000 $ 193, 000 151, 500 Payroll $ 34, 200 $ 34, 200 $ 27,300 Lease payments $ 31, 600 $ 31, 600 $ 31, 600 Advertising $ 74, 000 $ 74 , 000 $ 43,000 Equipment purchases $ 0 $ 70, 500 Depreciation $ 31,000 $ 31,000 $ 31,000 c. Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise purchases during March, which will be paid in April, total $175,000. d. In preparing the cash budget, assume that the $73,000 loan will be made in April and repaid in June. Interest on the loan will total $1,080. Gray Hill ... 20 O TOM FORDafari File Edit View History Bookmarks Window Help A ezto.mheducation.com C BONUS HOMEWORK Saved Help Sa 3 Total cash available Less cash disbursements: Merchandise purchases Payroll 10 points Lease payments Advertising Equipment purchases eBook Total cash disbursements Print Excess (deficiency) of cash available over disbursements References Financing: Borrowings Repayments Interest Total financing Ending cash balance Required 1 A MAY ... 20 TOM FORD 45AN