Wickford Company's financial managers are meeting with the company's bank to renew their line of credit and discuss their investment needs. They have prepared the company's operating cash budget for the last six months of the year. Use the following budget assumptions to construct the budget and fill in the blanks...

Wickford's total sales for each month were first calaulated in the sales budget an are reflected on t he ne of he cash budget Wickford's sales are made on credit with tems of 2/10, net 30. wickford's experience is that 25% is collected from customers who take advantage of the discount, 65% is collected in the second month, and the last 10% is collected in the third month afterthe sale. The budget assumes that there are no bad The cost of materials averages 55% of Wickford's finished product. The purchases are generally made one month in advance of the sale, and Wickford pays its suppliers in 30 days. Accordingly, if July sales are forecasted at $1,210 million, then purchases during June would be $666 ($1,210 million x 0.55) and this amount would be paid in July Other cash expenses include wages and salaries at 17% of sales, monthly rent of $44 million, and other es at 5% of sales. Estimated tax payments of $6 d $67 are required to be pai millio on July 15 and October 15, respectively. In addition, a $1,100 million payment for a new plant must be made in September. Assume that wickford's targeted cash balance is $200, and the estimated cash on hand on July 1 is $180 Use the preceding information to fill in the missing amounts in the following cash budget. Wickford Company Cash Budget For the Six Months Ended December 31, Year 1 millions) July August September October November December May June Credit sales $1,045 $1,078 $1,100 $1,111 $1,133 $1,155 $1,188 $1,210 Credit purchases 605 623 635 653 666 July August September October November December Cash receipts ns fro m this month's sales 272 278 283 291 296 Collections from previous month's sales 715 722 736 751 772 Collections from sales two months previously 108 110 113 116 Total cash receipts $1,095 $1,110 $1,130 $1,155 $1,181 Cash disbursements Payments for credit purchases 605 611 623 653 666 Wages and salaries 187 189 193 202 206 Rent Other expenses 55 56 57 61 Payment for plant construction 1,100 otal cash disbursements $955 $900 $2,017 $958 $977 Wet cash flow (Receipts disbursements) $121 $195 -$907 $130 $197 $207 Beginning cash balance 180 301 196 281 Ending cash balance $301 $496 $281 -$B $123 Target (minimum) cash balance 200 200 200 200 200 surplus (shortfall) cash $101 $296 $284 $77