Additional information follows: 1. Other expenses, which are paid monthly, include $3,500 of depreciation per month. 2. Sales are 44% for cash and 56% on credit. 3. Credit sales are collected 50% in the month of sale, 35% one month after sale, and 15% two months after sale. May sales were $40,000, and June sales were $42,000. 4. Merchandise is paid for 50% in the month of purchase; the remaining 50% is paid in the following month. Accounts payable for merchandise at June 30 totaled $12,000. 5. The store maintains its ending inventory levels at 30% of the cost of goods to be sold in the follow- ing month. The inventory at June 30 is $7,600. 6. An equipment note of $10,000 per month is being paid through August. 7. The store must maintain a cash balance of at least $10,000 at the end of each month. The cash balance on June 30 is $10,000. 8. The store can borrow from its bank as needed. Borrowings and repayments must be in multiples of $100. 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 6% per year. Required a. Prepare a monthly schedule of budgeted operating cash receipts for July, August, and September. please show step by step how each part is done.

Assume all Office Depot stores do cash budgeting every quarter. One store is planning its cash needs For the third quarter of the year, and the following information is available to assist in preparing a cash judget. Budgeted income statements for July through October are as follows