Cash Budget The owner of a building supply company has requested a cash budget for June. After examining the records of the company, you find the following a. Cash balance on June 1 is $736. b. Actual sales for April and May are as follows: April May Cash sales Credit sales Total sales Credit sales are collected over a three-month period: 40% in the month of sale, 30% n the second month, and 20% in the third month. The sales collected in the third month are subject to a 2% late fee, which is paid by those customers in addition to what they owe. The remaining sales are uncollectible. Inventory purchases average 64% of a month's total sales of those purchases, 20% are paid for in the month of purchase. The remaining 80% are paid for n the following month $10,000 $18,000 35,000 $53,000 28,900 $38,900 c. d. e. Salaries and wages total $11,750 per month, including a $4,500 salary paid to the owner. f. Rent is $4,100 per month. g. Taxes to be paid in June are $6,780 The owner also tells you that he expects cash sales of $18,600 and credit sales of $54,000 for June. No minimum cash balance is required. The owner of the company doesn't have access to short-term loans