Reference no: EM13509359

Randall Company is a merchandising company that sells a single product. The company's inventories, production, and sales in units for the next three months have been forecasted as follows:

	October	November	December
Beginning inventory	12,000	12,000	12,000
Merchandise purchases	62,000	72,000	37,000
Sales	62,000	72,000	42,000
Ending inventory	12,000	12,000	7,000

Units are sold for $11 each. One fourth of all sales are paid for in the month of sale and the balance are paid for in the following month. Accounts receivable at September 30 totaled $452,000.

Merchandise is purchased for $6 per unit. Half of the purchases are paid for in the month of the purchase and the remainder are paid for in the month following purchase. Selling and administrative expenses are expected to total $122,000 each month. One half of these expenses will be paid in the month in which they are incurred and the balance will be paid in the following month. There is no depreciation. Accounts payable at September 30 totaled $292,000 includes selling and administrative payables.

Cash at September 30 totaled $82,000. A payment of $302,000 for purchase of equipment is scheduled for November, and a dividend of $202,000 is to be paid in December.

Required:

Prepare a schedule of expected cash collections for each of the months of October, November, and December. (Omit the "$" sign in your response.)

 

Schedule of Expected Cash Collections
	October	November	December
Sales	$	$	$
September accounts receivable	$
October sales		$
November sales			$
December sales
Total cash collections	$	$	$

 

Prepare a schedule showing expected cash disbursements for merchandise purchases and selling and administrative expenses for each of the months October, November, and December. (Omit the "$" sign in your response.)

Schedule of Expected Cash Disbursements
	October	November	December
Merchandise purchases	$	$	$
Selling and administrative expenses
Total incurred	$	$	$
Disbursements, previous month	$	$	$
Disbursements, current month
Total	$	$	$

 

Prepare a cash budget for each of the months October, November, and December. There is no minimum required ending cash balance. (Input all amounts as positive values. Omit the "$" sign in your response.)

Randall Company Cash Budget
	October	November	December
Beginning cash balance	$	$	$
Add cash receipts
Total cash available	$	$	$
Disbursements
Accounts payable
Payment for equipment
Payment for dividend
Total disbursements
Ending cash balance	$	$	$