Cash Budget The controller of Feinberg Company is gathering data to prepare the cash budget for July. He plans to develop the budget from the following information: Of all sales, 40% are cash sales. Of credit sales, 45% are collected within the month of sale. Half of the credit sales collected within the month receive a 2% cash discount (for accounts paid within 10 days). Thirty percent of credit sales are collected in the following month; remaining credit sales are collected the month thereafter. There are virtually no bad debts. Sales for the second two quarters of the year follow. (Note: The first three months are actual sales, and the last three months are estimated sales.) Sales April $ 450,000 May 580,000 June 900,000 July 1,140,000 August 1,200,000 September 1,134,000 The company sells all that it produces each month. The cost of raw materials equals 26% of each sales dollar. The company requires a monthly ending inventory of raw materials equal to the coming month's production requirements. Of raw materials purchases, 50% are paid for in the month of purchase. The remaining 50% is paid for in the following month. Wages total $105,000 each month and are paid in the month incurred. Budgeted monthly operating expenses total $376,000, of which $45,000 is depreciation and $6,000 is expiration of prepaid insurance (the annual premium of $72,000 is paid on January 1). Dividends of $130,000, declared on June 30, will be paid on July 15. Old equipment will be sold for $25,200 on July 4. On July 13, new equipment will be purchased for $173,000. The company maintains a minimum cash balance of $20,000. The cash balance on July 1 is $27,000. Required: Prepare a cash budget for July. Give a supporting schedule that details the cash collections from sales.