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Cambridge, Inc, is preparing its master budget for the quarter ended June 30. It sells...

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Accounting

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Cambridge, Inc, is preparing its master budget for the quarter ended June 30. It sells a single product for $40 each. Sales are 60% cash and 40% on credit. All credit sales are collected in the month following the sale. At March 31, the balance in accounts receivable is $12,000, which represents the uncollected balance on March sales. Budgeted sales for the next four months follow: April May June July Sales in units.. 800 1,000 600 1,200 The product cost is $20 per unit, and desired ending inventory is 60% of the following month's sales in units. Inventory at March 31 is 480 units. Purchases are paid 50% in the month of purchase and 50% in the following month. At March 31, the balance in accounts payable is $11,000, which represents the unpaid purchases from March. Operating expenses are paid in the month incurred and consist of: Commissions (10% of sales) Shipping (3% of sales) Office salaries ($3,000 per month) Rent ($5,000 per month) Depreciation is $2,000 per month. Prepare the following Budgets for the months of April, May, and June (2nd Qtr) Sales budget Table of cash receipts Merchandise purchases budget Table of cash disbursements for purchases of merchandise Table of cash disbursements for selling and administrative expenses

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