Blueline Printing's board of directors was presented with the following information about operations for an upcoming three-month period.The board desires to declare a dividend at the end of June, but still maintain cash on hand of $250,000.Blueline began April with $75,000 of cash on hand. Make a cash budget, and determine how much cash will be available for the dividend.Is there any apparent risk associated with the dividend plan?

April May June

Customer receipts $700,000 $750,000 $800,000

Cash paid for direct materials 200,000 222,000 265,000

Cash paid for direct labor 245,000 265,000 300,000

Factory overhead* 140,000 145,000 154,000

SG&A** 86,000 89,000 83,000

Taxes 15,000 18,000 16,000

Equipment purchase*** 500,000

* Includes monthly depreciation of $100,000

** Includes monthly depreciation of $25,000

*** Equipment purchase to be paid for in July