7. Cash budgetBasic Grenoble Enterprises had sales of $50,500 in March and $60,500 in April. Forecast sales for May June, and July are $70,400, $79,800, and $100,300, respectively. The firm has a cash balance of $4,600 on May 1 and wishes to maintain a minimum cash balance of $4,600. Given the following data, prepare and interpret a cash budget for the months of May, June, and July (1) The firm makes 16% of sales for cash, 56% are collected in the next month, and the remaining 28% are collected in the second month following sale (2) The firm receives other income of $2,300 per month (3) The firm's actual or expected purchases, all made for cash, are $49,600, $70,400, and $79,500 for the months of May through July, respectively (4) Rent is $3,500 per month (5) Wages and salaries are 11% of the previous month's sales (6) Cash dividends of $2,500 will be paid in June (7) Payment of principal and interest of $4,400 is due in June (8) A cash purchase of equipment costing $5,900 is scheduled in July (9) Taxes of $5,700 are due in June Complete the first month of the cash budget for Grenoble Enterprises below: (Round to the nearest dollar. Please input all the values in the table before checking your answers.) April $50,500 $ 60,500 $ 70,400 March Sales Cash sales Lag 1 month Lag 2 months Other income 8,080 9,680 $ Total cash receipts (Round to the nearest dollar. Please input all the values in the table before checking your answers.) March April May Disbursements Purchases Rent Wages and salaries Dividends Principal and interest Purchase of new equipment Taxes due Total cash disbursements (Round to the nearest dollar. Please input all the values in the table before checking your answers.)