Complete the table for computation of merchandise purchases budget.

Part III-Purchases Budget              
Complete the table for computation of merchandise purchases budget.        
Pfeffer Company        
Merchandise Purchases  Budgets        
For February, March and April        
February March April        
Budgeted Ending Inventory        
Add budgeted sales        
Required units of available merchandise        
Deduct beginning inventory        
Budgeted purchases (units)        
Budgeted cost per unit        
Budgeted cost of merchandise purchases        
Part IV-Cash Payments Budget              
60% of accounts payable are paid in the month of purchase with the remaining 40%        
paid the following month.  Complete cash payments information.          
Cash payments on product purchases (for March and April)        
From purchases in Total % Paid March April        
Total Paid        
Part V-Cash Budget                
Pfeffer has an outstanding balance on a loan of $120,000 at 10%          
annual interest taken last month to meet minimum balance          
requirements of $150,000.  Loans should be taken out and paid back          
based on the ending cash balance each month.  Complete the cash          
budget for Pfeffer Company for March and April.            
Pfeffer Company          
Cash Budget          
March and April          
    March April          
Beginning cash balance 45,000.00 0.00 Don’t forget that you must include in this what you collect from A/R
Cash receipts from customers but also cash sales for the months (the 3% that are in cash)
Total available cash
Cash disbursements          
  Payments on purchases          
  Selling and administrative expenses 160,000.00 160,000.00          
  Interest expense          
Total disbursements          
Preliminary cash balance          
Additional loan          
Repayment of loan          
Ending cash balance          
Ending loan balance          
Part VI-Analysis Component              
Reviewing the information in the cash budget, what is the value of this information        
to Pfeffer Company’s financial manager?  What would he use this information for?        
Be as specific as possible in your answer.              
Please stay in the outlined areas.          

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