Question: Please answer fully with work shown ! With work 3. Archer, Electronics Company's actual sales and purchases for April and May are shown here, along

Please answer fully with work shown !

With work

Please answer fully with work shown ! With workPlease answer fully with work shown ! With work
3. Archer, Electronics Company's actual sales and purchases for April and May are shown here, along with forecast sales and purchases for June through September. (30 points). Sales Purchases April (actual).. $370,000 $155,000 May (actual). 350,000 145,000 June (forecast).. 325,000 145,000 July (forecast) .... 325,000 205,000 August (forecast) ...... 340,000 225,000 September (forecast). 380,000 220,000 The company makes 20 percent of its sales for cash and 80 percent on credit. Of the credit sales, 50 percent are collected in the month after the sale, and 50 percent are collected two months later. Archer pays for 20 percent of its purchases in the month after purchase and 80 percent two months after. Labor expense equals 15 percent of the current month's sales. Overhead expense equals $12,500 per month. Interest payments of $32,500 are due in June and September. A cash dividend of $52,500 is scheduled to be paid in June. Tax payments of $25,500 are due in June and September. There is a scheduled capital outlay of $350,000 in September. Archer Electronics' ending cash balance in May is $22,500. The minimum desired cash balance is $10,500. Prepare a schedule of monthly cash receipts, monthly cash payments, and a complete monthly cash budget with borrowing and repayments for June through September. The maximum desired cash balance is $50,500. Excess cash (above $50,500) is used to buy marketable securities. Marketable securities are sold before borrowing funds in case of a cash shortfall (less than $10,500). Please prepare your Cash Receipts section, Cash payments section and use the template below for your Cash Budget.Archer Electronics Cash Budget June July August September Cash receipts Cash payments Net cash flow Beginning cash balance Cumulative cash balance Monthly borrowing (or repayment) Cumulative loan balance Marketable securities purchased Marketable Securities (Sold) Cumulative marketable securities Ending cash balance

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