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The owner of a plumbing supply company has requested a cash budget for June. After examining the records of the company, you find the following:

Cash balance on June $1$ is $$1,386.$

Actual sales for April and May are as follows:

Line Item Description April May

Cash sales $$10,000$ $$18,000$

Credit sales $28,90035,000$

Total sales $$38,900$ $$53,000$

Credit sales are collected over a $3-$month period: $30\%$ in the month of sale, $40\%$ in the second month, and $20\%$ in the third month. The sales collected in the third month are subject to a $2\%$ late fee, which is paid by those customers in addition to what they owe. The remaining sales are uncollectible.

Inventory purchases average $64\%$ of a month's total sales. Of those purchases, $20\%$ are paid for in the month of purchase. The remaining $80\%$ are paid for in the following month.

Salaries and wages total $$11,750$ per month, including a $$4,500$ salary paid to the owner.

Rent is $$5,000$ per month.

Taxes to be paid in June are $$6,780.$

The owner also tells you that he expects cash sales of $$18,600$ and credit sales of $$58,000$ for June. No minimum cash balance is required. The owner of the company doesn't have access to short$-$term loans.

Prepare a cash budget for June. Include supporting schedules for cash collections and cash payments. Round calculations and final answers to the nearest

dollar. Be sure to enter percentages as whole numbers.

Cash Budget

For June

Beginning cash balance

Collections:

Cash sales

Credit sales:

Current month

May credit sales

April credit sales

Total cash available

Less disbursements:

Inventory purchases:

Current month

$x$

$\%$

$$

Prior month

fill in the blank $14$ of $21$$

$\backslash$times fill in the blank $15$ of $21$

$\%$ fill in the blank $16$ of $21$

Salaries and wages fill in the blank $17$ of $21$

Rent fill in the blank $18$ of $21$

Taxes fill in the blank $19$ of $21$

Total cash needs fill in the blank $20$ of $21$

Excess of cash available over needs fill in the blank $21$ of $21$$

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