Cash budget-Basic Grenoble Enterprises had sales of $50,100 in March and $60,300 in April. Forecast sales for May, June, and July are $70,200, $79,800, and $100,300, respectively. The firm has a cash balance of $5,400 on May 1 and wishes to maintain a minimum cash balance of $5,400. Given the following data, prepare and interpret a cash budget for the months of May, June, and July (1) The firm makes 16% of sales for cash, 55% are collected in the next month, and the remaining 29% are collected in the second month following sale (2) The firm receives other income of $1,600 per month. (3) The firm's actual or expected purchases, all made for cash, are $50,300, $69,500, and $79,600 for the months of May through July, respectively (4) Rent is $3,000 per month (5) Wages and salaries are 8% of the previous month's sales (6) Cash dividends of $2,500 will be paid in June (7) Payment of principal and interest of $3,800 is due in June (8) A cash purchase of equipment costing $6,300 is scheduled in July (9) Taxes of S5,900 are due in June