4. Prepare a cash budget for the Ace Manufacturing Company, indicating receipts and dis- bursements for May, June, and July. The firm wishes to maintain at all times a minimum cash balance of $20,000. Determine whether or not borrowing will be necessary during the period, and if it is, when and for how much. As of April 30, the firm had a balance of $20,000 in cash. ACTUAL SALES FORECASTED SALES May June January February March ri $50,000 50,000 60,000 60,000 70,000 80,000 100,000 100,000 August Accounts receivable: 50 percent of total sales are for cash. The remaining 50 percent will be collected equally during the following two months (the firm incurs a negligible bad-debt loss). Cost of goods manufactured: 70 percent of sales: 90 percent of this cost is paid the fol- lowing month and the remaining 10 percent one more month later. . Selling, general, and administrative expenses: $10,000 per month plus 10 percent of sales. All of these expenses are paid during the month of incurrence. Interest payments: A semiannual interest payment on $150,000 of bonds outstanding (12 percent coupon) is paid during July. An annual $50,000 sinking-fund payment is also made at that time. o Dividends: A $10,000 dividend payment will be declared and made in July. o Capital expenditures: $40,000 will be invested in plant and equipment in June. Taxes: Income tax payments of $1,000 will be made in July