Cash budget-Basic Grenoble Enterprises had sales of $49,900 in March and $60,000 in April. Forecast sales for May, June, and July are $69,600, $80,200, and $100,000, respectively. The firm has a cash balance of $4,700 on May 1 and wishes to maintain a minimum cash balance of $4,700. Given the following data, prepare and interpret a cash budget for the months of May, June, and July. (1) The firm makes 21% of sales for cash, 56% 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 $2,100 per month. (3) The firm's actual or expected purchases, all made for cash, are $50,000, $69,500, and $79,800 for the months of May through July, respectively. (4) Rent is $2,700 per month. (5) Wages and salaries are 10% of the previous month's sales. (6) Cash dividends of $3,500 will be paid in June. (7) Payment of principal and interest of $3,900 is due in June. (8) A cash purchase of equipment costing $6,400 is scheduled in July. (9) Taxes of $6,500 are due in June. March April May Sales $ 49,900 $ 60,000 $ 69,600 Cash sales 10,479 12,600 $ $ Lag 1 month Lag 2 months $ Other income $ Total cash receipts