Consider the following information that will assist you in preparing a cash budget for ABC COMPANY for the month of July: The cash balance on July 1" is expected to be $12,000. June July Revenue from sales $25,000 $50,000 Purchases (merchandise) $12,000 $27,000 Traditionally, 70% of all sales are cash sales collected in the same month as the sale; the remaining 30% of all sales are collected in the month following the sale. Also, 60% of the purchases of merchandise are paid for in the same month as the purchase; the remaining 40% of the purchases are paid for in the month following the purchase. The following expenses are expected to be incurred in the month of July Salaries ...... ..$15,000 Depreciation 12,000 Advertising 3,000 Rent .... 5,000 Additional Information: The company pays a commission to their sales manager of 10% on monthly sales revenue. The commission is paid in the month following the rlonth to which it relates. The company has purchased a new insurance policy with a total annual cost of $1,800. The insurance contract calls for this to be paid in equal monthly installments. The company plans on purchasing a new computer system for $14,000. The full amount will be paid in August . However, in July, the company plans on selling their old computer system for $6,000 cash proceeds. Required: Prepare a Cash Budget for ABC COMPANY for the month of JULY