2. Hook's Boat Supplies Limited has planned the following sales and inventory purchases for the next three months: July August September Budgeted sales $ 75,000 $60,000 $80,000 Inventory purchases $ 35,000 $ 28,000 $ 40,000 Sales are made 20% for cash & 80% on account. From experience the company has learned that a month's sales on account are collected according to the following: Month of sale First month following sale Second month following sale Uncollectible 60% 30% 5% 5% The company requires a minimum cash balance of $5,000 at the end of each month. The beginning cash balance is budgeted to be $10,000 on September 1, 2020. The company purchases all inventory on account and 50% are paid for in the month of purchases; the remainder are paid in the following month. Additional information for September, 2020: Operating expenses (all paid in September) 36,000 Depreciation expense included in above operating expenses 6,000 Dividends paid in September 8,000 Equipment to be purchased in September 25,000 The company has an agreement with the local bank that allows the company to borrow up to $40,000. The budgeted balance of loans at August 31 is $0. All borrowing is done at the beginning of the month and the interest rate on the loan is 8% per year. Required: Prepare a cash budget for the month of September 2020 only