Based on the following data, prepare a cash budget (in proper form with labels) for July and August.

Forecast sales

May $12,000 Cash sales are 30% of total sales. Credit sales

June 15,000 are collected as follows: 60% one month after the

July $16,000 sale and 40% 2 months after the sale

August $12,000

Accounts payable are paid 100% 2 months after the purchase

Expected A/P

May $4,500 In addition to purchases, there are utility

June $6,500 bills of $1,500 each month and rent of $1,200

July $7,000 per month.

August $8,000

Beginning cash for July is $4,800