Below you can find a balance sheet for the ABC company, a clothing retailer depicting its financial position on the 31st of August.

Assets
Cash						3000
Marketable securities						6000
Inventory						30000
Accounts receivable (due in September 2019)						75000
Property and Equipment						620000
Accumulated Depreciation						100000
Property and Equipment, net						520000
Total Assets						634000
Liabilities and Stockholders' Equity
Accounts payable (due in September 2019)						96000
Notes payable (due in September 2019)						17000
Capital (par value + excess of par value)						425000
Retained earnings						96000
Total L + SE						634000

1. Prepare the schedule of cash collections for September

2. Prepare the schedule of cash disbursements for September

3. Prepare a cash budget for September

4. Prepare a budgeted income statement for September

5. Prepare a balance sheet as of the 30th of September

This is the information you were able to gather to help in the calculations:

a) You expect to make sales in the amount of 300 000 during the month of September

29% of these sales will be made in cash, all the rest will fall into accounts receivable.

50% of the credit sales are collected within the same month, and the rest is usually collected during the next month.

b) All the inventory purchases made by ABC company are always made on account

38% of those purchases/accounts payable are paid within the same month

62% of those purchases/accounts payable are paid within the next month

0% of those purchases/accounts payable are paid within the third month

It is estimated that the ABC company will need to purchase 200 000 USD worth of inventory.

c)ABC company anticipates that it will finish September with a 40 000 USD inventory balance in its store.

d) You expect to incur the following (all in cash) expenses in September:

Salaries		expense		20000
Utilities		expense		20000
Rent		expense		13000
Interest		expense		1000
Depreciation		expense		3200

e) Company wants to buy some new shelves and displays in September. It will cost 9000 USD. Therefore it decided to borrow 17500 USD from a credit union for 9 months in the middle of September.

f) The company does not anticipate to pay dividends in the near future