Cash budget: Basic Grenoble Enterprises had sales of $$50,000$ in March and $$60,000$ in April. Forecast sales for May, June, and July are $$70,000,$ $$80,000,$ and $$100,000,$ respectively. The firm has a cash balance of $$5,000$ on May $1$ and wishes to maintain a minimum cash balance of $$5,000.$ Given the following data, prepare and interpret a cash budget for the months of May, June, and July.

The firm makes $20\%$ of sales for cash, $60\%$ are collected in the next month, and the remaining $20\%$ are collected in the second month following sale.

The firm receives other income of $$2,000$ per month.

The firm$$s actual or expected purchases, all made for cash, are $$50,000,$ $$70,000,$ and $$80,000$ for the months of May through July, respectively.

Rent is $$3,000$ per month.

Wages and salaries are $10\%$ of the previous month$$s sales.

Cash dividends of $$3,000$ will be paid in June.

Payment of principal and interest of $$4,000$ is due in June.

A cash purchase of equipment costing $$6,000$ is scheduled in July.

Taxes of $$6,000$ are due in June.