Cash budget-Basic Grenoble Enterprises had sales of $49,500 in March and $59,800 in April. Forecast sales for May, June, and July are 569,500, $80, 100, and $99,600, respectively. The firm has a cash balance of $4.500 on May 1 and wishes to maintain a minimum cash balance of $4,500. Given the following data, prepare and interpret a cash budget for the months of May, June, and July. (1) The firm makes 20% of sales for cash, 57% are collected in the next month, and the remaining 23% are collected in the second month following sale. (2) The firm receives other income of $2,500 per month. (3) The firm's actual or expected purchases, all made for cash, are 549,800, 570,300, and $80,300 for the months of May through July, respectively. (4) Rent is $3,100 per month. (5) Wages and salaries are 8% of the previous month's sales. (6) Cash dividends of $2,700 will be paid in June. (7) Payment of principal and interest of $4,200 is due in June. (8) A cash purchase of equipment costing $5,900 is scheduled in July (9) Taxes of $5,500 are due in June. TITLE Sales $ 49,500 $ 59,800 $ 69,500 9,900 11,960 S Cash sales Lag 1 month Lag 2 months $ $ $ Other income Total cash receipts $