Additional information follows:

$1.$ Other expenses, which are paid monthly, include $\backslash (\backslash$$ $3,500\backslash )$ of depreciation per month.

$2.$ Sales are $\backslash (44\backslash \%\backslash )$ for cash and $\backslash (56\backslash \%\backslash )$ on credit.

$3.$ Credit sales are collected $\backslash (50\backslash \%\backslash )$ in the month of sale, $\backslash (35\backslash \%\backslash )$ one month after sale, and $\backslash (15\backslash \%\backslash )$ two months after sale. May sales were $\backslash (\backslash$$ $40,000\backslash ),$ and June sales were $\backslash (\backslash$$ $42,000\backslash ).$

$4.$ Merchandise is paid for $\backslash (50\backslash \%\backslash )$ in the month of purchase; the remaining $\backslash (50\backslash \%\backslash )$ is paid in the following month. Accounts payable for merchandise at June $30$ totaled $\backslash (\backslash$$ $12,000\backslash ).$

$5.$ The store maintains its ending inventory levels at $\backslash (30\backslash \%\backslash )$ of the cost of goods to be sold in the following month. The inventory at June $30$ is $\backslash (\backslash$$ $7,600\backslash ).$

$6.$ An equipment note of $\backslash (\backslash$$ $10,000\backslash )$ per month is being paid through August.

$7.$ The store must maintain a cash balance of at least $\backslash (\backslash$$ $10,000\backslash )$ at the end of each month. The cash balance on June $30$ is $\backslash (\backslash$$ $10,000\backslash ).$

$8.$ The store can borrow from its bank as needed. Borrowings and repayments must be in multiples of $\backslash (\backslash$$ $100\backslash ).$ All borrowings take place at the beginning of a month, and all repayments are made at the end of a month. When the principal is repaid, interest on the repayment is also paid. The interest rate is $\backslash (6\backslash \%\backslash )$ per year.

Required

a$.$ Prepare a monthly schedule of budgeted operating cash receipts for July, August, and September.

b$.$ Prepare a monthly purchases budget and a schedule of budgeted cash payments for purchases for July, August, and September.

c$.$ Prepare a monthly cash budget for July, August, and September. Show borrowings from the store's bank and repayments to the bank as needed to maintain the minimum cash balance.