Quagmire has 185000 of cash on hand at he beginning of may

Question

Assignment

Quagmire Inc. has prepared the following sales budget for the quarter of April, May and June:

Sales Budget
	April	May	June	Total
Sales in units	12600	16800	14400	43800
Selling price per unit	x $60	x $60	x $60
Sales revenue	$756000	$1008000	$864000	$2628000

All of the sales are on credit. 
Quagmire collects from customers as follows:

45% of sales in the month of sale 
25% in the month following the sale, and 
30% in the second month following the sale.

Cash receipts budget
	April	May	June	Total
Collect from current sales	340200	453600	388800	1182600
Collect from last month	225000	189000	252000	666000
Collect from 2 mos. Prior	248400	270000	226800	745200
Cash receipts	$ 813600	$ 912600	$ 867600	$ 2593800

Quagmire expects cost of goods sold to be 40% of sales.

They keep 10% of next months expected cost of goods sold in ending inventory. Below are budgeted purchases of inventory.
All purchases are paid for in the SAME month as the purchase.

Purchases Budget
	April	May	June	Total
Budgeted cost of goods sold	302400	403200	345600	1051200
plus desired ending inventory	40320	34560	27360	27360
Total needs	342720	437760	372960	1078560
less beginning inventory	(30240)	(40320)	(34560)	(30240)
Cost of purchases	312480	397440	338400	1048320

Below is the budget for variable and fixed selling and administrative expenses.
Selling and admin expenses are paid in the month AFTER they are incurred.
Fixed expenses include depreciation of 17100 each month.

Sales and Admin Budget
	April	May	June	Total
Variable S&A expenses	75600	100800	86400	262800
Fixed S&A (including depreciation)	171000	171000	171000	513000

Quagmire has $185000 of cash on hand at he beginning of May.

Prepare a cash budget for May and June. (Use excel so that multiple attempts are easier.)

Compute the beginning balance in cash for June.

Compute the ending balance in cash for June.