ACCT9700 Practice Exercise: Cash Budget Question: ABC Company is preparing a cash budget for the next three months (May, June, July). The following information is available: Sales (all on credit): May $50,000, June $60,000, July $70,000 Purchases (all on credit): May $30,000, June $35,000, July $40,000 Labor and overhead expenses: May $15,000, June $18,000, July $20,000 Rent: $5,000 per month Cash balance on May 1: $10,000 Cash collections: 60% in the month of sale, 30% in the following month, 10% uncollectible Cash payments for purchases: 50% in the month of purchase, 50% in the following month All other expenses are paid in the month incurred Prepare a cash budget for ABC Company for the months of May, June, and July.