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Sun and Clear, Inc., is a small wholesale distributor of consumer goods. The compary

generates a gross margin shown in the blue table. The percent of cash sales is shown in

the blue table; the remainder is sold on account and is collected one month later.

Accounts receivable on June $302022$ are the result of June's credit sales to be collected

the next month. Budgeted sales for the period are:

As of July $1$st$,$ the company plans for each month's ending inventory to be the blue table

percentage of the following month's budgeted cost of goods sold. Inventory cash

purchases are also shown in the blue table; the rest is paid for in the following month.

The accounts payable on June $30$ are the result of June's purchases of inventory. All

monthly expenses were paid monthly. Monthly expenses included: commissions, $$8,500$;

rent, $$2,000$; other expenses $($eacluding depreciation$),$ are reflected in the blue able as a

percent of sales. Depreciation is $$1,200$ for the quarter and includes depreciation on new

assets acquired during the quarter. The assets acquired were all cash purchases,

equipment of $$3,000$ in July and $$2,500$ in August. The company wishes to maintain a

minimum cash balance of $$2,000$ at the end of each month. The company has excellent

relationship with a local credit union that allows the company to borrow in increments of

$$1,000$ at the beginning of each month, up to a total line of credit loan balance of

$$30,000.$ The interest rate on these loans is $2\mathrm{.}5\%$ per month, and interest is not

compounded. The company, when able, repays the loan plus accumulated interest at the

end of the quarter.

To rece ive the following month

Save yourfile to prese we

this trble. Complete the

assignments on the 'Display'

Eudget Schedules' tab.

To pay the following mo mth

Required:

Using the data above, for the $3$rd quarter ending Sept $302022,$ prepare the following

monthly & quarter;

a$.$ The schedule of the expected Cash Collections

b$.$ The merchandise Purchases budget:

c$.$ The schedule of expected cash disbursements $-$ Merchandise purchases.

d$.$ The schedule of expected cash disbursement$-$Selling and Administrative expenses

e$.$ The Cash budget:

f$.$ An absorption costing Income Statement, for the quarter ending Sept $302022.$

g$.$ A Balance Sheet as of Sept $302022$

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