1

Schedule of cash receipts:

Sale 250,000
Cash sales - June 60,000
Credit 190,000
Collections on account receivable:
May 31 balance 72,000
June 95,000
Total cash receipts 227,000

Schedule of cash payments for purchases:

May 31 AP balance 90,000
June purchases 80,000
Total cash payments 170,000

Cash balance beginning 8,000

Add cash receipt
Total cash available 193,000
Less disbursements
Purchases inventory 170,000
Selling and administrative expenses 51,000
Equipment purchases 9,000
Total disbursements 230,000
Excess (deficiency) (37,000)
Financing
Borrowings 18,000
Repayments 15,000
Interest 500
Total financing 33,500
Cash banlance ending (3,500)

2
Sales 250,000
COGS
Beginning inventory 30,000
Purchases 200,000
Good avalaible for sale 230,000
Ending inventory 40,000
COGS 190,000
Gross margin 60,000
Selling and administrative expenses 53,000
Net operating income 7,000
Interest expense 100
Net income 6,900
3
Cash (3,500)
Account receivable 95,000
Inventory 30,000
Plant & equipment, net of depreciation 507,000
Total assets 628,500
Liabilities and shareholders' equities
AP 100,000
Note payable 18,000
Capital stock 420,000
Retained earnings 91,900
Total liabilities 629,900