Ellis Electronics Company’s actual sales and purchases for April and May are shown here, along with forecasted sales and

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Ellis Electronics Company’s actual sales and purchases for April
and May are shown here, along with forecasted sales and purchases
for June through September.
The company makes 10 percent of its sales for cash and 90 percent
on credit. Of the credit sales, 10 percent are collected in the
month after the sale and 90 percent are collected two months after.
Ellis pays for 40 percent of its purchases in the month after
purchase and 60 percent two months after.
Labour expense equals 30 percent of the current month's sales.
Overhead expense equals $13,600 per month. Interest payments of
$38,000 are due in June and September. A cash dividend of $58,000
is scheduled to be paid in June. Tax payments of $26,600 are due in
June and September. There is a scheduled capital outlay of $460,000
in September.
Ellis Electronics' ending cash balance in May is $28,000. The
minimum desired cash balance is $23,000.
a. Prepare a schedule of monthly
cash receipts for June through September.
b. Prepare the monthly cash payments for
June through September.
c. Prepare a complete monthly cash budget
with borrowing and repayments for June through September. The
maximum desired cash balance is $51,600. Excess cash (above
$51,600) is used to buy marketable securities. Marketable
securities are sold before borrowing funds in case of a cash
shortfall (less than $23,000). (Omit $ sign in your
response. Do not leave any empty spaces; input a 0 wherever it is
required. Negative answers and amounts to be deducted should be
indicated by a minus sign.)