Som 2 Chapter 7 Connect Assignment Help Seve & ER Westex Products is a wholesale distributor of industrial cleaning products. The company treasurer has assembled the folowing information to assist in preparing a detailed cash budget to support the company's loan application for short term financing with a local bank a Budgeted sales and merchandise purchases for the year 2020, as well as actual sales and purchases for the last quarter of 2019 are as follows 2 10 points 80022 5300,000 2015: Fourth quarter actual 2020 Fiest-quarter estimated Second quarter estimated Third quarter estimated Fourth quarter estimated $10.00 688. 214,200 316,200 421,600 $1,500 214,200 $50.00 b. The company normally collects 65% of a quarter's sales before the quarter ends and another 33 in the following quarter The remainder are uncollectible. This pattern of collection is now being experienced in the 2019 fourth quarter actual data C 80% of a quarter's merchandise purchases are paid for within the quartet The remainder are paid in the following quarter di Operating expenses for the year 2020 are budgeted quarterly at 585 000 plus 15. of sales of the ed amount $94.000 each quarter is depreciation e The company will pay $17000 in dividends each quarter Equipment purchases of $128.180 will be made in the second quarter and purchases of $81.600 will be made in the mud quae These purchases will be for cash a. The cash account contained $17000 at the end of 2019. The treasurer feels that this tepresents ammum balance that must be maintained Any borrowing will take place at the beginning of a quarter and any repayments will be made at the end of a quarter at antara interest rate of 10 Interest is paid only when the principal is repaid All borrowings and a repayments of the principalmstein round $1.000 amounts Interest payments can be in any amount. (Compute interest on whole months, 1122/12 Required: 1. Prepare the following by quarter and in total for the year 2020 a. A schedule of expected cash collections WESTEX PRODUCTS Schedule of Expected Cash Collections First Second Third Total Fourth 340,000 $ 510,000 2019-Fourth quarter sales 2020-First-quarter sales 2020-Second-quarter sales 2020-Third quarter sales 2020-Fourth-quarter sales Total cash disbursements 680,000 $ 510,000 $ 680,000 $ 0 $ 340 000 5 0 b. A schedule of budgeted cash disbursements for merchandise purchases. Total WESTEX PRODUCTS Schedule of Budgeted Cash Disbursements for Merchandise Purchases First Second Third Fourth 2019-Fourth-quarter purchases 2020-First-quarter purchases 2020-Second-quarter purchases 2020-Third-quarter purchases 2020-Fourth-quarter purchases 0 $ Total cash payments 0 $ S 0 $ 0 2. Compute the expected cash payments for operating expenses, by quarter and in total, for the year 2020 First Second Third Fourth Year Cash payments W21 Chapter 7 Connect Assignment Help Save & EX 2 3. Prepare a cash budget, by quarter and in total, for the year 2020. In your budget, clearly show the quarter(s) in which borrowing will be necessary and the quarter(s) in which repayments can be made, as requested by the company's bank. (Roundup "Borrowing and "Repayments" answers to the nearest whole dollar amount. Any "Repayments, interest" und "Deficiency of cash should be indicated by a minus sign.) 10 points WESTEX PRODULIS Canh budget for year 2120 Fit Stel Third Yem 8005132 0 0 0 0 Total cash available Deduct Disbursements Total disbursements Excess (deficiency) of receipts over disbursements Financing