Consider the budgeted income statement for Carlson Company for June 20X4 in Exhibit 7-13. The cash balance, May 31, 20X4, is $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 May 31, 20X4, consisting of $20,000 from April sales and $24,000 from May sales. Accounts payable on May 31, 20X4, are $145,000. Carlson Company pays 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 insur-ance and property taxes are paid annually in December for the forthcoming year. Prepare a cash budget for June. Confine your analysis to the given data. Ignore income taxes. Sales Inventory, May 31 Purchases Available for sale Inventory, June 30 Cost of goods sold Gross margin Operating expenses Wages Utilities Advertising Depreciation Office expenses Insurance and property taxes Operating income $ 36 5 10 1 4 3 59 $ 29 $ 50 192 242 40 202 $ 88 $290