3. The following information is budgeted for McCracken Plumbing Supply Corporation for next quarter: April May June Sales..... $110,000.00 $130,000.00 $180,000.00 Merchandise purchases.. $85,000.00 $92,000.00 $ 105,000.00 Selling and administrative expenses .... $50,000.00 $50,000.00 $50,000.00 All sales at McCracken are on credit. Forty five percent are collected in the month of sale, 52% 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 $8,500 of depreciation on display fixtures and warehouse equipment. All other selling and administrative expenses are paid as incurred. McCracken wants to maintain a cash balance of $15,000. Any amount below this can be borrowed from a local bank as needed in increments of $500. All borrowings are made at month end. Required: Prepare McCracken's cash budget for May. McCracken expects to have $24,000 of cash on hand at the beginning of May