Using Hitchens info from the income statement budgets (part 1), the remaining account info is presented to prepare the components of the balance sheet budgets. Assume the same budget is expected for the next three months (July, Aug, Sept). 1. Opening July 1 cash balance is $579,225 . 2. A/R beginning balance of $2,110,425 was 64% collected in July and the remaining in August. 3. Sales: 30% collected in month of sale, 50% the following month, and 20% in the third month. 4. A/P opening balance of $290,400 was paid 70% this month and 30% next month. 5. Direct Materials are paid 30% during month of purchase, 50% the following month, and 20% the third month. 6. W/P had an opening balance of $228,500 and paid off this month 7. Direct Labor is paid 71% this month and the remaining in the following month. 8. Factory Overhead & Selling/Admin is paid 100% this month (excluding Depreciation) 9. Dividends are expected to be paid of $177,770, $240,000, and $260,000 in the three months respectively 10. Plans are in place to purchase a piece of equipment for $153,330 in month 2 (10% paid in month 2, another 40% paid in month 3 and the remaining 50% in month 4) a. Retired Asset expected to sell for $11,420 and collected 100% in the second month. 11. 100% of income tax is paid this month 12. Beginning balances: a. Equipment = 2,164,000 b. Accum. Dep. Equipment = 1,256,000 c. Common Stock = $2,500,000 d. Retained Earnings = $1,077,913 Prepare these following budgets for month one, two and three. 1. Schedule of cash collections from customers 2. Schedule of cash payments for D.M. 3. Schedule of cash payments for D.L. 4. Cash Budget 5. Budgeted balance sheet (as of month 1)