7. Cash Budget The Williams Supply Company sells for $40 one product that it purchases for $25. Budgeted sales in total dollars for the year are $1,400,000. The sales information needed for preparing the July budget follows Month May. July Sales Revenue $34,000 48,000 56,000 64,000 Account balances at July 1 include these: Cash. .. $24,000 The company pays for one-half of its purchases in the month of purchase and the remainder in the fol- lowing month. End-of-month inventory must be 50 percent of the budgeted sales in units for the next month. A 2 percent cash discount on sales is allowed if payment is made during the month of sale. Ex- perience indicates that 50 percent of the billings will be collected during the month of sale, 40 percent in the following month, 8 percent in the second following month, and 2 percent will be uncollectible. Total budgeted selling and administrative expenses (excluding bad debts) for the fiscal year are estimated at $210,000, of which one-half is fixed expense (inclusive of a $21,000 annual depreciation charge). Fixed expenses are incurred evenly during the year. The other selling and administrative expenses vary with sales. Expenses are paid during the month incurred. Required a. Prepare a schedule of estimated cash collections for July b. Prepare a schedule of estimated July cash payments for purchases. c. Prepare schedules of July selling and administrative expenses, separately identifying those requiring cash disbursements. d. Prepare a cash budget in summary form for July