Part 3

AZTEC COMPANY
Merchandise Purchases Budgets
For May, June, and July
May

June

July

Budgeted ending inventory (from part 2)............. 1,360

1,075

923

Add budgeted sales...........................................

3,800

6,500

5,000

Required units of available merchandise........ 5,160

7,575

5,923

Deduct beginning inventory.............................

(847)

(1,360)

(1,075)

Budgeted purchases (units).............................

4,313

6,215

4,848

Budgeted cost per unit......................................

$110

$110

$110

Budgeted cost of merchandise purchases........$474,430

$683,650 $533,280

Part 4
Cash payments on product purchases (for June and July)
From purchases in
Total
% Paid
June
May................................................
$ 474,430
40%
$189,772
June...............................................683,650
60
410,190
.................................................
40
________
July................................................533,280
60
Total paid.......................................
$599,962

July
$273,460
319,968
$593,428

Part 5
AZTEC COMPANY
Cash Budget
June and July

June

Beginning cash balance..........................................$ 120,000

July

$ 120,000

Cash receipts from customers...............................

771,120

882,980

Total available cash.................................................

891,120

1,002,980

Cash disbursements
Payments on purchases.......................................

599,962

593,428

Selling and administrative expenses...................

138,000

138,000

Interest expense*...................................................

326

80

Total disbursements..............................................

738,288

731,508

Preliminary cash balance........................................

152,832

Additional loan from bank.......................................

(32,832)

(151,472)

Repayment of loan to bank..................................... ________

________

Ending cash balance...............................................$ 120,000

$ 120,000

Ending loan balance**............................................. $ 10,668

($140,80
4)

* Interest expense
June= $43,500 x 9%/12 = $326
$10,668
July = $10,668 x 9%/12 = $80
($140,804)

271,472

** Loan balance
June = $43,500 + ($32,832) =
July = $10,668 + ($151,472) =