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Calgon Products, a distributor of organic beverages, needs a cash budget for September. The following information is available:

a. The cash balance at the beginning of September is $9,000.

b. Actual sales for July and August and expected sales for September are as shown below. Sales on account are collected over a three-month period as follows: 10% collected in the month of sales, 70% collected in the month following sale, and 18% collected in the second month following the sale. The remaining 2% is uncollectable.

	July	August	September
Cash Sales	$6,500	$5,250	$7,400
Sales on Account	$20,000	$30,000	$40,000
Total Sales	$26,500	$35,250	$47,400

c. Purchases of inventory will total $25,000 for September. 20% of a months inventory purchases are paid for during the month of purchase. The accounts payable remaining from Augusts inventory purchases total $16,000, all of which will be paid in September.

d. Selling and Administrative expenses are budgeted at $13,000 for September. Of this amount, $4,000 is for depreciation.

e. Equipment costing $18,000 will be purchased for cash during September, and dividends totaling $3,000 will be paid during the month.

f. The company maintains a minimum cash balance of $5,000. An open line of credit is available from the companys bank to bolster the cash position as needed.

Prepare a schedule of expected cash collections for September.

Prepare a schedule of expected cash disbursements during September for inventory purchases.

Prepare a cash budget for September. Indicate in the financing section any borrowing that will be needed during September

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