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After studying the required resources of the module and completing Task 6.1, use the data and information from JKL Corporation, and the results you obtained in task 6.1, and prepare the cash budget for the quarter ending in June. Use the following table as a model:

*** Information needed bellow

	April	May	Jun	Total
Beginning Cash Balance
cash receipts
cash available
Less disbursements:
Shopping
Administrative expenses andsales
Purchase of equipment
dividends
Total disbursements
Excess (deficiency) of cash
Financing:
Loan
loan payments
Interests
Financing
effective ending balance

Use the following information:

Preparation of Sales receipts budget for the quarter as follows:

Schedule of Sales Receipts
	April	May	June	Total
A) Sales	$75,500	$72,000	$84,000	$231,500
B) Cash sales ( A x 20% )	$15,100	$14,400	$16,800	$46,300
C) Credit sales ( A x 80% )	$60,400	$57,600	$67,200	$185,200
D) Collection from Accounts receivable	$64,000	$60,400	$57,600	$182,000
E) Total collections from sales ( B + D )	$79,100	$74,800	$74,400	$228,300

Preparation of Purchase Budget for the Quarter:

Purchase Budget
	April	May	June	Total
A) Sales	$75,500.00	$72,000.00	$84,000.00	$231,500.00
B) Cost of sales ( A x 53% )	$40,015.00	$38,160.00	$44,520.00	$122,695.00
C) Ending Inventory	$9,540.00	$11,130.00	$8,413.75	$29,083.75
D) Total Needed ( B + C )	$49,555.00	$49,290.00	$52,933.75	$151,778.75
E) Beginning Inventory	$15,400.00	$9,540.00	$11,130.00	$36,070.00
F) Budgeted Purchases ( D + E )	$64,955	$58,830	$64,063.75	$187,848.75

Preparation of Disbursements in purchases budget for the quarter:

Schedule of Purchase Disbursement
	April	May	June	Total
A) Budgeted Purchases	$64,955.00	$58,830.00	$64,063.75	$187,848.75
B) Cash Purchase ( A x 40% )	$25,982.00	$23,532.00	$25,625.50	$75,139.50
C) Accounts Payable paid	$23,400.00	$38,973.00	$35,298.00	$97,671.00
D) Total Purchase Disbursement ( B + C )	$49,382.00	$62,505.00	$60,923.50	$172,810.50

Preparation of Disbursements of Administrative and Sales expenses budget for the quarter:

Disbursements of Administrative and Selling Expenses
	April	May	June	Total
A) Salaries	$12,500	$12,500	$12,500	$37,500
B) Advertising	$7,300	$7,300	$7,300	$21,900
C) Other expenses	$6,040	$5,760	$6,720	$18,520
D) Total Selling and Administrative expenses ( A + B + C )	$25,840	$25,560	$26,520	$77,920

6.2

Use the following information:

Financial and operational data of JKL CorporationJKL Corporation is engaged in trading business and is drawing up its master budget for the next quarter of operations from April to June 20xx. The data collected and necessary to work with such a budget are the following:A. Certain data from the Balance Sheet as of March 31, 20xx:

	Dr.	Cr.
Cash	$20,000
Accounts Receivable	$64,000
Inventory	$15,400
Builings and equipment (net of depreciation)	$225,000
Accounts Payable		$23,400
Long Term Debt		$90,000
Common Stock-Capital		$150,000
Retained Earnings		$61,000
Total	$324,400	$324,400

B. The expected (projected) and real sales for several months of 20xx are:

march (reals)	$80,000
april	$75,500
mayo	$72,000
june	$84,000
july	$63,500

C. Other important information:

1- Monthly sales are 20% in cash and 80% on credit. Credit sales from the previous month are collected in full in the following month (thus, what is in accounts receivable at the end of March is 80% of March sales).

2- The gross profit margin generated by the corporation on its sales is 47%.

3- The ending inventory of each month is equal to 25% of the budgeted cost of sales for the next month.

4- 40% of the monthly merchandise purchases are paid in the month of purchase and the remainder in the month following the purchase.

5- The expected monthly expenses are: salaries, $12,500; advertising, $7,300 per month and remaining expenses (except depreciation) represent 8% of sales. Assume these expenses are paid every month (nothing is owed at the end of the month).

6- The depreciation expense is $10,000 for the quarter and includes the portion that corresponds to the assets acquired during the period.

7- Cash equipment was purchased: $28,000 in April and $24,000 in May of 20xx.

8- Management wants to maintain a minimum cash balance at the end of each month of $8,000.

9- When the company needs money, it can borrow from a local bank in increments of $1,000 at the beginning of each month up to a loan limit of $20,000. The interest rate that the bank charges on these loans is 1% per month and the interest is paid next month (we assume that it is not compound interest and that each loan is made at the end of the month). The company paid dividends of $8,500 in June.

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