1. The city of Charleston had the following sales of water for the selected months of 2017 Month February March April May $50,000 45,000 60.000 42,500 70.000 120,000 une July All sales are on credit. Historically, 50 percent is collected in the month of sale, 35 percent during the first month following the sale, and 15 percent in the second month following the sale Water purchases by month are as follows Month February March April May June July Sales S37,500 33.750 45,000 31,875 52,500 90.000 Water is purchased in the month of sale. All purchases are paid during the month following the purchase Operating costs are $18,000 and everything is paid in cash except for depreciation, which totals $8,000 a month The city plans on purchasing some new equipment in May for $25,000 in exchange for a note payable The April 1 cash balance is expected to be $5,000 The city must maintain a minimum cash balance of $10,500, and money can be borrowed from a local bank in increments of $1,000. The city borrows money ant the beginning on the first day of the month and repays loans and interest on the last day of the month. The bank charges the city an annual interest rate of 15% Required Prepare a cash budget for April, May, June and in for the quarter, and based on your answer complete the following table Round to the nearest dollar and do not enter decimals and if a zero needs to be entered, enter "0" Danm April May June Quarter Beginning Cash Balance $ 5,000 $14,500 8,500 $ 5,000 as Collections Water disbursements) Operating Costs Borrowings Repayments Interest Ending cash balance $ 14,500 $10,500 $ 25,500 $ 25,500