Cash budget-Basic Grenoble Enterprises had sales of $50,500 in March and $60,200 in April. Forecast sales for May, June, and July are $70,100, $80,400, and $99,600, respectively. The firm has a cash balance of $5,300 on May 1 and wishes to maintain a minimum cash balance of $5,300. Given the following data, prepare and interpret a cash budget for the months of May, June, and July. (1) The firm makes 23% of sales for cash, 65% are collected in the next month, and the remaining 12% are collected in the second month following sale. (2) The firm receives other income of $2,400 per month. (3) The firm's actual or expected purchases, all made for cash, are $49,900, $70,500, and $79,800 for the months of May through July, respectively. (4) Rent is $3,300 per month. (5) Wages and salaries are 9% of the previous month's sales. (6) Cash dividends of $3,500 will be paid in June. (7) Payment of principal and interest of $4,500 is due in June. (8) A cash purchase of equipment costing $5,600 is scheduled in July. (9) Taxes of $5,700 are due in June. Net cash flow Add: Beginning cash Ending cash March Minimum cash Required total financing (notes payable) Excess cash balance (marketable securities) April 69 May 69 69 GA 60