The following information is available for the Dixon Company for the second quarter of 2005.

Required: Prepare a cash budget for the second quarter of 2005.

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Apr May Jun Budgeted Receipts from Credit Sales $500,000 $520,000 $550,000 Budgeted Cash Sales 100,000 105,000 112,000 Budgeted Cash Payments 670,000 615,000 627,000 Beginning cash balance for April 2005 is expected to be $90,000. The company intends to maintain a cash balance of at least $50,000. The company has made arrangements to bor- row from a local bank if necessary.