Cash Budget The owner of a plumbing supply company has requested a cash budget for June. After examining the records of the company, you nd the followmg: a. Cash balance on June 1Is$1,086. b. Actual sales for April and May are as follows: April May Cash sales $10,000 $18,000 Credit sales 28,900 35,000 Total sales $38,900 $53,000 c. Credit sales are collected over a 3month period: 30% in the month of sale, 40% in 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. d. Inventory purchases average 66% of a month's total sales. Of those purchases, 20% are paid for in the month of purchase. The remaining 80% are paid for in the following month. e. Salaries and wages total $11,750 per month, including a $4,500 salary paid to the owner. f. Rent Is $4,200 per month. 9. 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 $58,000 for June. No minimum cash balance is reqUired. The owner of the company doesn't have access to short-term loans. 1. Prepare a cash budget for June. Include supporting schedules for cash collections and cash payments. Round calculations and final answers to the nearest dollar. Be sure to enter percentages as whole numbers. Cash Budget For June Beginning cash balance 1,086 Collections: Cash sales 18,600 Credit sales: Current month 58,000 X 30 of 17,400 May credit sales 35,000 V 40 14,000 April credit sales 5,896 Total cash available 19,686 X Less disbursements: Inventory purchases: Current month 20,539 X x 20 oPrior month Salaries and wages 9' Rent 9' Taxes 1/ Total cash needs Excess of cash available over needs E