Reference no: EM132514299

Rocklin Company gathered the following budget information for the quarter ending September 30, 2019:

Sales                                            $540,000
Purchases                                       450,000
Salaries and wages                            194,000
Rent                                                  10,000
Supplies                                                8,000
Insurance                                               2,000
Other cash expenses                                 12,000

• A cash balance of $36,000 is planned for July 1. Accounts receivable are expected to be $60,000 on July 1. All but one-half of 1% of the July 1 Accounts Receivable balance will be collected in the quarter ending September 30. The company's sales collection pattern is 95% in the quarter of sale and 5% in the quarter after sale. Accounts payable will be $30,000 on July 1 and will be paid during the coming quarter. The company's purchases payment pattern is 75% in the quarter of purchase and 25% in the quarter after purchase. Expenses are paid in the quarter in which they are incurred.

Question 1: Prepare a cash budget for the quarter ending September 30, 2019.