i need the answer quickly please solve all as they connected pleasehelp meExercise Topic 6 (PROBLEM 8–21)Natural Care Corp., a distributor of natural cosmetics, is ready to begin its third quarter, inwhich peak sales occur. The company has requested a 90-day loan fromits bank to help meetcash requirements during the quarter. Because Natural Care has experienced difficulty inpaying off its loans in the past, the bank's loan officer has asked the company to prepare acash budget for the quarter. In response to this request, the following data have beenassembled:a. OnJuly 1, the beginning of the third quarter, the company will have a cash balance of$43,000.July$290,000September$431,000b.August$355,600Total cash receipts from customersc. Budgeted merchandise purchases and budgeted expenses for the third quarter are givenbelow: JMerchandise purchasesSalaries and wagesAdvertisingRent paymentsDepreciationJuly$160,000$70,000$80,000$30,000$40,000August$160,000$70,000$90,000$30,000$40,000September$155,000$65,000$100,000$30,000$40,000d. Equipment costing $25,000 will be purchased for cash during July.e. In preparing the cash budget, assume that sufficient amount of loan will be made in Julyand repaid in September. Interest on the loan will total $2,000.f. The company needs a minimumcash balance of $30,000 to start each month.Required:1. Prepare a cash budget for July, August, and September and in total, for the third quarter.

Cash budget shows the estimated cash reciepts and payments.

Exercise Topic 6 (PROBLEM 8–21) Natural Care Corp., a distributor of natural cosmetics, is ready to begin its third quarter, in vhich peak sales occur. The company has requested a 90-day loan fromits bank to help meet ash requirements during the quaiter. Because Natural Care has experienced difficulty in aying off its loans in the past, the bank’s loan officer has asked the company to prepare a ash budget for the quarter. In response to this request, the following data have been ssembled: On July 1, the beginning of the third quarter, the company will have a cash balance of S43,000. July $290,000 August $355,600 September $431,000 Total cash receipts fromcustomers : Budgeted merchandise purchases and budgeted expenses for the third quarter are given pelow: J Merchandise purchases Salaries and wages Advertising Rent payments Depreciation July $160,000 $70,000 $80,000 $30,000 $40,000 August $160,000 $70,000 $90,000 $30,000 $40,000 September $155,000 $65,000 $100,000 $30,000 $40,000 1. Equipment costing $25,000 will be purchased for cash during July. In preparing the cash budget, assume that sufficient amount of loan will be made in July and repaid in September. Interest on the loan will total $2,000. The company needs a minimumcash balance of $30,000 to start each month. Required: .. Prepare a cash budget for July, August, and September and in total, for the third quarter.

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter2: Financial Statements And The Annual Report

Section: Chapter Questions

Problem 2.6DC