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2 nd

. In class assignment M.ACCT section 51

You are provided with the following Sales Budget, Purchases Budget and selling and administrative expenses budget for Tech. to go Co. for the second quarter of the year 2020. (I)Sles Budget

April. May. June. Total

Cash sales 35,000 20,750 23,000 76,750

Credit sales 2,000 14,000 17,000 33,000

Total sales 37,000 34,750 40,000 111,750

(II)Purchase Budget

April. May. June. Total

Cash Purchases 13,000 17,000 24,000 54,000

Credit Purchases 3,000 6,000 9,000 18,000

Total Purchases 16,000 23,000 33,000 72,000

(III)Sales& Administrative Expenses Budget

April. May. June. Total

Salaries 7,000 8,000 7,600 22,600

Sales Commissions

3,800 2,600 4,400 10,800

Rent 400 400 400 1,200

Maintenance 1,200 1,750 1,500 4,450

Insurance 150 150 150 450

Utilities 300 300 300 900

Depreciation 200 200 200 600

Total 13,050 13,400 14,550 40,750

Requirements: Assuming Tech. to go is planning to purchase new equipment for $9,000 cash during April 2020. All cash expenses are paid when incurred except insurance expenses which are expiration of prepaid. Prepare the following budgets for the second quarter of the year 2020: 1-Collections from customers budget Assume all credit sales will be collected during the following month of sale. (Accounts Receivable at March.31, 2020 equals $9,000) 2- Payments for purchases budget Assume all credit purchases will be paid during the following month of purchases (Accounts Payable at March 31, 2020 equals $4,000)

3- Cash budget assume Cash balance at March.31 2020 equals $12,000.

4-Determine the amount of Accounts Receivable, Accounts

Payable and cash balance at June 30,2020.

Requirement 1 Cash receipt from customer’s Budget April. May. June. Total

April Collections: From April Sales From March Sales

Total April collection

May Collections: From May Sales From April Sales

Total May collections

June Collections: From June Sales From May Sales

Total June collections

Total cash receipt

Requirement 2 purchase payment Budget

April. May. June. Total

April purch. Payments: For April Purch. For March Purch.

Total April. Purc. Pay.

May purch. Payments: For May Purch. For April Purch.

Total May Purch. Pay.

June purch. Payments: For June Purh. For May Purch.

Total June Purch. Pay.

Total Purchase Payments

Requirement 3 Cash Budget

April. May. June. Total

Beginning cash balance

Cash receipts

Cash available

Cash payments:

For Purchases

For S & Adm. Exp.

For Additional Assets

Total cash payments

Ending cash balance

Requirement 4 a- Accounts receivable at June 30,2020 = …………………………. b- Accounts Payable at June 30, 2020 = …………………………….

c- Cash Balance at June 30,2020 = ………………………