SECTIONS OPEN QUESTIONS Note ALL are compulsory and MUST be attempted the worth பாவotal 0 காக்க Problem lupidu, presiden

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SECTIONS OPEN QUESTIONS Note ALL are compulsory and MUST be attempted the worth பாவotal 0 காக்க Problem lupidu, president orasie Masius proched the company's bank with a request for a series of fans. The purpose of the land is to assist the company in building inventories in support of peak Apeilles. Since the company has had some detty in pwying of its lone in the past the loan Moer has asked for a cash budget to help determine whether the loan should be made. The following data are available for the month April-June, during which the loan will be used On April 1, the start of the loan period, the cash balance will be $15'000. Accounts receivable on April I will total S164'000, of which $138°000 will be collected during April and the remainder will be collected during May. b. Past experience shows that 20% of the month's sales are collected in the month of sale, 55% in the month following sale, and 2596 in the second month following sale. Bad debts are negligible. Budgeted sales and expenses for the period follow these numbers are taken directly from the company's budgeted income statement: April May June Notes: Sales S280 000,00 $340 000,00 $260 000,00 Merchandise purchases $196 000,00 $187 000.00 S130 000.00 Payroll S10 000,00 57 000,00 $11 000,00 Includes an adjustment of S2000 accrued every month Lease payments $14 000 S14 000 $14 000 Advertising Includes an accrual of a cost to be paid in September of S10000 in every month $75 000 $70 000 $40 000 Equipment purchases $o S8 000 SO Depreciation $20 000 $20 000 $20 000 Merchandise purchases are paid in the following way: one half of a particular month's purchases e paid that month and another half is paid during the month following purchase. Accounts payable r merchandise purchases on March 31, total $49'000. preparing the cash budget, assume that the $40'000 loan will be made in April and repaid in e, another loan of $45'000 will be made in May and also repaid in June. Interest rate on th as is 2% per month on outstanding loan amount during the month. Assume that all borrowing made in the beginning of a month and all repayments are made at the end of a month. A ed interest is repaid only when the whole principal is repaid.