Cash budget-Basic Grenoble Enterprises had sales of $49,600 in March and $60,300 in April. Forecast sales for May, June, and July are $69,900,$79,600, and $99,500, respectively. The firm has a cash balance of $5,500 on May 1 and wishes to maintain a minimum cash balance of $5,500. Given the following data, prepare and interpret a cash budget for the months of May, June, and July. (1) The firm makes 18% of sales for cash, 60% are collected in the next month, and the remaining 22% are collected in the second month following sale. (2) The firm receives other income of $1,700 per month. (3) The firm's actual or expected purchases, all made for cash, are $49,700,$70,200, and $80,400 for the months of May through July, respectively. (4) Rent is $2,500 per month. (5) Wages and salaries are 8% of the previous month's sales. (6) Cash dividends of $2,800 will be paid in June. (7) Payment of principal and interest of $4,300 is due in June. (8) A cash purchase of equipment costing $6,000 is scheduled in July. (9) Taxes of $5,600 are due in June. \begin{tabular}{|c|c|c|c|c|c|} \hline & & arch & April & & May \\ \hline Sales & $ & 49,600$ & 60,300 & $ & 69,900 \\ \hline Cash sales & & 8,928 & 10,854 & $ & \\ \hline Lag 1 month & & & & $ & \\ \hline Lag 2 months & & & & $ & \\ \hline Other income & & & & $ & \\ \hline Total cash receipts & & & & $ & \\ \hline \end{tabular}