Prepare a cash budget for Aztec Home Health Agency for the months of May, June, and July. The firm wishes to maintain a $200,000 minimum cash balance during the period, and it presently has a $220,000 balance as of April 30.

Revenues are presented in TABLE 23-8.

The firm collects 30% of its revenue in the month billing occurred, 30% in the next month, and 25% in the following month. The firm fails to collect 15% of its revenue because of either bad debt or contractual allowances.

Expense budget relationships are presented here:

Payroll 5 $50,000 per month plus 0.50 × revenues Supplies 5 0.10 3 revenues Rent 5 $50,000 per month Debt service 5 $150,000 in July Capital expenditures 5 $75,000 in June Eighty percent of payroll expense is paid in the month this expense was incurred, and 20% is paid in the following month. Supplies expense is paid in the following month. All other items are paid in the month reported. Determine during which months Aztec can invest surplus funds and during which months it might need to borrow.