Consider the budgeted income statement for Blue Mountain for the month ended 30 June 2017 below:- $ $ Sales 290,000 Less: Cost of Goods Sold Inventory, 31 May 2017 50,000 Purchases 192,000 Available for sale 242,000 Inventory, 30 June 2017 (40,000) 202,000 Gross profit 88,000 Less: Operating expenses Wages 36,000 Utilities 5,000 Advertising 10,000 Depreciation 1,000 Office expenses 4,000 Insurance and property taxes 3,000 (59,000) Operating profit 29,000 ===== Additional information: The cash balance on 31 May 2017 -$15,000. Sales proceeds are collected as follows: 80% the month of sale; 10% the second month; and 10% the third month. Accounts receivable are $ 44,000 on 31 May 2017 consisting of $ 20,000 from April 2017 sales and $24,000 from May 2017 sales. Accounts payable on 31 May 2017 are $ 145,000. ICLBAT/JANUARY 2019 6 Blue Mountain pay 25% of purchases during the month of purchase and the remainder during the following month. All operating expenses requiring cash are paid during the month of recognition, except that insurance and property taxes are paid annually in December for the forthcoming year. Required: Prepare a cash budget for June 2017. Confine your analysis to the given data. Ignore income taxes.