Ahlia Company has the following information:

Cash Balance, June 30 $50,000

Dividends paid in July 60,000

Cash paid for operating expenses in July 185,500

Depreciation expense in July 12,000

Cash collections on sales in July 510,000

Merchandise purchases paid in July 180,000

Purchase equipment for cash in July 94,500

Ahlia Company wants to maintain a minimum cash balance of $50,000. Assume that borrowing occurs at the beginning of the month and repayments occur at the end of the month. Interest of 1% per month is paid in cash at the end of each month debt is outstanding. Borrowing and repayment is carried out in multiples of $1,000.

Instructions:

Prepare a cash budget for July.