Carson Ltd. has prepared the following 2021 projections for its beverage company:

Sales

Month	Cash Sales	Credit Sales
May	$ 16,000	$ 68,000
June	20,000	80,000
July	18,000	74,000
August	24,000	92,000
September	22,000	76,000

Receivables have been historically collected at the following rates:

• 40% in the month of sale
• 45% in the month following sale
• 15% two months after sale

Inventory Purchases

Month	Purchase Amounts
May	$ 70,000
June	72,000
July	74,000
August	78,000
September	80,000

40% of purchases are paid for in cash in the month of sale, and the balance is paid the following month.

General Costs

In addition to purchases, Carson has the following monthly costs:

• Salaries and wages: $ 8,000
• Rent: $4,000

General costs are paid in the month incurred.

Other Information

Carson plans on declaring and issuing $5,000 in dividends in July, and to purchase new equipment valued at $35,000 in August.

Carson has a line of credit of $30,000 that may be drawn upon should cash balances fall below $0. The interest on the line of credit is 15% annually. All borrowing is effective at the beginning of the month, and all repayments are made at the end of the month of repayment. Loans are repaid when sufficient cash is available. Interest is paid only at the time of repayment of principal. Management does not want to borrow any more cash than is necessary and wants to repay as soon as cash is available.

Carsons cash balance on June 30^th is $6,000.

Required:

Prepare the following for the months of July, August, and September:

1. Cash collections schedule
2. Cash disbursement schedule
3. Cash budget

I want detail explain