At the end of April the manager of Gaylord's Boutique is concerned about the store's cash position. Their accountant has informed her that they have fallen below the target cash balance. This represents a potential problem since while, historically, May is a good month for the business - June and July are the slowest months of the year.

Assume all of Gaylord's sales are made on account with 50% of the Sales collected in the same month as the sale and the remainder collected in the following month. Cost of Goods Sold averages 40% of Sales. Because most of Gaylords sales are made to order, it holds minimal inventory. As a consequence, inventory is ordered as needed with 85% of inventory purchases paid for in the month of the purchase and 15% paid in the following month. Monthly non-Inventory related expenses average $35,000 plus 25% of Sales and are paid in the month incurred.

Month	Sales	Status
April	$640,000	Actual
May	$980,000	Forecast
June	$360,000	Forecast
July	$290,000	Forecast

Determine the expected cash collections for May.
Determine the amount of inventory purchased in May.
Determine the amount of cash payments made in May. (Include both
inventory and non-inventory cash payments)
If the cash balance on May 1 is $80,000, what is the expected cash
balance on June 1st?
Based on the above information what is the expected cash balance
on July 1st?