The management accountant at Miller Merchandising & More, Odail Russell is in the process of preparing the cash budget for the business for the fourth quarter of 2021. It is customary for the business to borrow money during this quarter. Extracts from the sales and purchases budgets are as follows: Cash Sales Sales On Account Month Purchases Continued. August September October $85,000 $70.000 $88,550 $77,160 $174,870 $640,000 $550,000 $600.000 $800,000 $500,000 $420,000 ix) Taxation of $85,000 has to be settled in December. $550.000 $500.000 $600,000 $450,000 A money market instrument purchased by the company with a face value of $300,000 will x) mature on October 15, 2021. In order to meet the financial obligations of the business, management has decided to liquidate the investment upon maturity. On that date quarterly interest computed at a rate of 5% per annum is also expected to be collected. November December i) An analysis of the records shows that trade receivables are settled according to the following credit pattern, in accordance with the credit terms 4/30, n90: xi) The cash balance at December 31, 2021 is expected to be an overdraft of $236,000. 50% in the month of sale 30% in the first month following the sale 20% in the second month following the sale Required: Expected purchases include monthly cash purchases of 5%. All other purchases are on account. Accounts payable are settled as follows, in accordance with the credit terms 2/30, n60: ii) (а) preparation of the following: • A schedule of budgeted cash collections for trade receivables (sales on account) for each of the months October to December. The business needs to have a sense of its future cashflows and therefore requires the 60% in the month in which the inventory is purchased 40% in the following month i) Fixed operating expenses which accrue evenly throughout the year, are estimated to be $1,680,000 per annum, (including depreciation on non-current assets of $420,000 per annum) and is settled monthly. • A schedule of expected cash disbursements for accounts payable (purchases on account) for each of the months October to December. · A cash budget, with a total column, for the quarter ending December 31, 2021, showing the expected cash receipts and payments for each month and the ending cash balance for each of the three months, given that no financing activities took place. iv) Wages and salaries are expected to be $2,280,000 per annum and will be paid monthly. v) Other operating expenses are expected to be $108,000 per quarter and will be settled monthly. Another team member who is preparing the Budgeted Balance Sheet for the business for the same quarter and has asked you to furnish him with the figures for the expected trade receivables and payables to be included in the statement at December 31, 2021. Is that a reasonable request? If yes, what should these amounts be? (b) In the month of November, an old motor vehicle, which cost $650,000, will be sold to an vi) employee at a gain of $30,000. Accumulated depreciation on the motor vehicle at that time is expected to be $540,000. The employee will be allowed to pay a deposit equal to 60% of the selling price in November and the balance settled in two equal amounts in December 2021 & January of 2022. (c) Upon receipt of the budget the team manager has now informed you that the management of Miller Merchandising & More have indicated a desire to maintain a minimum cash balance of $125,000 each month. Based on the budget prepared, will the business be achieving this desired target? Given that the management does not wish to borrow any funds from outside sources, suggest three (3) internal strategies that the business may employ in order to improve the organization's monthly cash flow. Each strategy must be fully explained. vii) Computer equipment, which is estimated to cost $320,000, will be acquired in November. The manager has made arrangements with the dealer to make a cash deposit of 50% of the amount upon signing of the agreement in November, with the balance to be settled in four equal monthly instalments, starting in December 2021 viii) The management of Miller Merchandising Company has negotiated with a tenant to rent office space to her beginning November 1. The rental is $624,000 per annum. The first month's rent along with one month's safety deposit is expected to be collected on November 1. Thereafter, monthly rental income becomes due at the beginning of each month.

The management accountant at Miller Merchandising & More, Odail Russell is in the process ofpreparing the cash budget for the business for the fourth quarter of 2021. It is customary for thebusiness to borrow money during this quarter. Extracts from the sales and purchases budgets areas follows:Month               cash sales           sales on account      purchasesAugust               $85,000                     $640,000              $420,000September       $70,000                      $550,000              $550,000October             $ 88,550                    $600,000              $500,000November         $77,160                     $800,000              $600,000December       $174,870                    $500,000               $450,000 Expected purchases include monthly cash purchases of 5%. All other purchases are on account. Accounts payable are settled as follows, in accordance with the credit terms –2/30, n60: 60% in the month in which the inventory is purchased40% in the…

Evergreen Furniture, a retailing company, is preparing the cash budget for August. The following inventory information available: Estimated payments in August for purchases in August Estimated purchases for August Estimated cost of goods sold for August Estimated payments in August for purchases in July Estimated payments in August for purchases prior to July Inventories at beginning of August Required: What are the estimated cash disbursements in August? Estimated cash disbursements 70% $ 2,444,000 2,600,000 696,000 176,000 674,000

Pelican Merchandising & More is a family-owned store. The business is now approaching the end of the year and is in the process of identifying its cash needs for the first quarter of the new year. You are the management accountant of the entity and have been tasked to prepare the cash budget for the business for the quarter ending March 31, 2022. (i) Extracts from the sales and purchases budgets are as follows: Month Cash Sales Cash Purchases 2021 - 2022 Sales On Purchases On Account Account November 2021 December 2021 January 2022 February 2022 March 2022 $138,100 $156,500 $170,975 $135,740 $480,000 $345,000 $600,000 $650,000 $700,000 $800,000 $25,800 $44,625 $30,400 $380,000 $400,000 $480,000 $226,420 $55,100 $540,000 (ii) An analysis of the records shows that trade receivables (accounts receivable) are settled according to the following credit pattern, in accordance with the credit terms 4/30, n90: 55% in the month of sale 35% in the first month following the sale 8% in the second…