SALES PROJECTIONSWilson Sports basketball sales in August were 152,000 units. Sales are expected to grow by 1.5% in September. October sales are expectedto be 1,000 units less than in September. November sales will be 19% more than October. The selling price of the basketballs will remain thesame $30 per unit. December sales projection is 157.000 units.INVENTORY POLICIESFINISHED GOODSMAINTAIN AND ENDING INVENTORY EQUAL TO 25% OF NEXT MONTH SALESACTUAL BEGINNING INVENTORY 38,500 UNITSDIRECT MATERIALSMAINTAIN AND ENDING INVENTORY EQUAL TO 30% OF NEXT MONTH PRODUCTIONACTUAL BEGINNING INVENTORY 9,000 POUNDSThe cost of materials purchased in August were $210,000REQUIREMENTSEach basketball requires 25 pounds of materials at a cost of $7 per pound. December production are projected to be 156,000 unitsEach basketball requires 15 minutes of labor at a rate of $12.00 per hourFixed Overhead is $400,000 monthly and variable overhead is assigned as 130% of direct laborSELLING AND ADMINISTRATIVE EXPENSESCommissions are 10% of Sales and Sales salaries are $90,000 monthlyGeneral & Administrative Experises are $150,000 monthlyOTHER EXPENSES AND CASH FLOWSA new machine at a total cost of $2500,000 will be purchased in SeptemberCash dividends of $2 million will be baid in NovemberCommissions are 10% of Sales and Sales salaries are $90,000 monthlyGeneral & Administrative Expenses are $150,000 monthlyOTHER EXPENSES AND CASH FLOWSA new machine at a total cost of $2,500,000 will be purchased in SeptemberCash dividends of $2 million will be paid in NovemberLast quarter taxes of $2,200,000 will be paid in October, because taxes are paid in next quarter at tax rate of 35%CASH POLICYThe firm requires an ending cash balance of $360,000.Actual cash balance is $360,000The firm has a short credit arrangement (credit line) with The National Bank. If the cash balance is lower than the required ending balance,the firm borrows from the bank. If the cash balance is higher than the required ending balance, the firm will pay the loan to the bank. Theoutstanding loan balance is $1,000,000 and the bank charges a 1% monthly interest rate.B0% of sales are cash sales and the remaining 20% collected one month later.90% of direct materials purchased are paid in cash and the remaining 10% are paid in the next month.CALCULATE TOTAL CASH AVAILABLE FOR OCTOBERROUND YOUR ANSWER TO ZERO DECIMAL PLACESDON'T USE COMMA SEPARATORSRespuesta

Cash budget refers to an estimation of cash inflows and outflows in a business over a specified…

SALES PROJECTIONS Wilson Sports basketball sales in August were 152,000 units. Sales are expected to grow by 1.5% in September. October sales are expected to be 1,000 units less than in September. November sales will be 19% more than October. The selling price of the basketballs will remain the same $30 per unit. December sales projection is 157,000 units. INVENTORY POLICIES FINISHED GOODS MAINTAIN AND ENDING INVENTORY EQUAL TO 25% OF NEXT MONTH SALES ACTUAL BEGINNING INVENTORY 38,500 UNITS DIRECT MATERIALS MAINTAIN AND ENDING INVENTORY EQUAL TO 30% OF NEXT MONTH PRODUCTION ACTUAL BEGINNING INVENTORY 9,000 POUNDS The cost of materials purchased in August were $210,000