2. The following information is budgeted for McCracken Plumbing Supply Company for next quarter: April MayJune $115,000 $130,000 $180,000 103,850 $92,000 $105,000 $51,000 $52,000 $53,000 Sales Merchandise purchases Selling and administrative expenses. All sales at McCracken are on credit. Forty percent are collected in the month of sale, 57% in the month following the sale, and the remaining 3% are uncollectible. Merchandise purchases are paid in full the month following the month of purchase. The selling and administrative expenses above include S9,500 of depreciation on display fixtures and warehouse equipment. All other selling and administrative expenses are paid in the month incurred. McCracken wants to maintain a cash balance of $16,000. Any amount below this can be borrowed from a local bank as needed in increments of $1,000. All borrowings are made at month end. Required: Prepare McCracken's cash budget for the month of May. McCracken expects to have $24,950 of cash on hand at the beginning of May. (4 points)