Amazon had sales of $50,000 in March and $60,000 in April. The forecasted sales for May, June, and July are $70,000, $80,000, and $100,000, respectively. On May 1st, the company has a cash balance of $5,000 and wishes to maintain a minimum cash balance of $5,000.

Instructions: Based on the given data, prepare and interpret a cash budget for the months of May, June, and July. Explain and justify the processes in detail. Explain equations if necessary.

1. The company receives 20% of its sales in cash, collects 60% the following month, and collects the remaining 20% two months after the sale.

1. The company also receives an additional income of $2,000 monthly.

1. The actual or expected cash purchases for the company are $50,000, $70,000, and $80,000 in May, June, and July, respectively.

1. The rent expense is $3,000 monthly.

1. Salaries and wages correspond to 10% of the previous month's sales.

1. Dividends of $3,000 will be paid in cash in June.

1. A principal and interest payment of $4,000 is scheduled to be made in June.

1. An equipment purchase in cash with a cost of $6,000 is planned for July.

1. Taxes of $6,000 will be paid in June.