CALCULATOR STANDARD VIEW PRINTER VERSION Cruises, Inc. has budgeted sales revenues as follows: June Credit sales $135,000 Cash sales 90,000 Total sales $225,000 $125,000 255,000 $380,000 August $90,000 195,000 $285,000 Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will be collected in the following month. Pun Inventory are all on credit and 50% is paid in the month of purchase and 50% in the month following purchase. Budgeted Inventory purchases are: June July August $300,000 240,000 105,000 Other cash disbursements budgeted: (a) selling and administrative expenses of $48,000 each month, (b) dividends of $103,000 will be paid in July, and (c) pure equipment in August for $30,000 cash. The company wishes to maintain a minimum cash balance of $50,000 at the end of each month. The company borrows money from the bank at 6% Interest if ne maintain the minimum cash balance. Borrowed money is repaid in months when there is an excess cash balance. The beginning cash balance on July 1 was $50, Assume that borrowed money in this case is for one month. . -45 or paren (a) Prepare a cash budget for the months of July and August (Enter negative amounts using either a negative sign preceding the number e.g. (45).) CRUISES, INC Cash Budget For the Two Months of July and August