Cash budgeting for Carolina Apple, a merchandising firm, is performed on a quarterly basis. The company is planning its cash needs for the third quarter of 2012, and the following information is available to assist in preparing a cash budget. Budgeted income statements for July through October 2012 are as follows:

	July	August	September	October
Sales	$10,000	24,000	20,000	36,000
Cost of goods sold	(10,000)	(14,000)	(16,000)	(20,000)
Gross profit	8,000	10,000	12,000	16,000
Less: other expenses
Selling	2,300	3,000	3,400	4,200
Administrative	2,600	3,000	3,200	3,600
Total	(4,900)	(6,000)	(6,600)	(7,800)
Net income	3,100	4,000	5,400	8,200

Additional information:

1. Other expenses which are paid monthly include $1000 of depreciation per month.

2. Sales are 30% for cash and 70% on credit.

3. Credit sales are collected 20% in the month of sale, 70% one month after sale and 10% two months after sale. May sales were $15,000 and June sales were $16,000.

4. Merchandise is paid for 50% in the month of purchase; the remaining 50% is paid in the following month. Accounts payable for merchandise at June 30 totaled $6,000.

5. The company maintains its ending inventory levels at 25% of the cost of goods to be sold in the following month. The inventory at June 30 is $2,500.

6. An equipment note of $5,000 per month is being paid through August.

7. The company must maintain a cash balance of at least $5,000 at the end of each month. The cash balance on June 30 is $5,100.

8. The company can borrow from its bank as needed. Borrowings and repayments must be in multiples of $100. All borrowings must take place at the beginning of a month, and all repayments are made at the end of the month. When the principal is repaid, interest on the repayment is also paid. The interest rate is 12% per year.

Prepare a monthly cash budget for July, August and September. Show borrowings from the company's bank and repayments to the bank as needed to maintain the minimum cash balance.