a. Green Spaces Ltd. sells industrial lawn mowers for $2,500 each. The company needs a cash budget for the month of May. The following information is available: Actual sales for April and expected sales for Miy are shown below. The company has both cash sales, and sales on account. Of the sales on account, 25% are collected in the month of sale, and 73% are collected in the month after sale. The remainder are uncollectible. April May Cash $12,500 $27,500 Sales Sales on $57,500 $82,500 account b. Purchases of their merchandise Inventory (the lawn mowers that they sell) will total $95,000 for May. Twenty percent of a month's inventory purchases are paid for during the month of purchase. The remaining 80% is paid for in the following month. Inventory purchases in April were $50,000. Selling and administrative expenses are budgeted at $18,000 for May. Of this amount $3,000 is for depreciation. Equipment costing $44,000 will be purchased in May. Terms of the purchase are 50% down payment and the balance due in 60 days. Dividends of $4,000 and income tax installment payments of $3,000 are expected to be paid in May. The company must maintain a minimum cash balance of $5,000 at the end of c. d f. each month. 9. Any borrowings must be done at the beginning of the month and all borrowings can only be in increments of $1,000. ().e. If they need $1,500, they must borrow $2,000.) There was no financing outstanding at the beginning of the month. The annual interest rate is 6% on any of the borrowings and is calculated and paid at the end of each month. The cash balance at the beginning of May is $7,200. h. 1. REQUIRED: Prepare a cash budget for May