Country Store The Country Store is a retail outlet for a variety of hardware and housewares. The owner of the Country Store is eager to prepare a cash budget for the next quarter, which is typically quite busy. She is concerned with her cash positions because she expects that she will have to borrow to finance purchases in anticipation of sales. She has gathered all the data necessary to prepare the budget, below. Borrowing occurs at the end of a month when cash is needed. Repayments (if appropriate) occur at the end of a month when cash is available. Ignore interest. Cash, beginning balance Budgeted sales: March (actual) April May June $9,000 60,000 70,000 85,000 90,000 20% of sales are collected in cash in the month of the sale; the remaining 80% is collected in the following month. Budgeted Expenses (per month): Wages and salaries 7,500 Advertising 6,000 Depreciation $2,000 Other expense, percent of sales 4% Freight out as a percent of sales 6% 33 Inventory purchases: April May June 50,000 54,000 30,000 50% of the inventory is paid for in the month purchased; cash is paid for the remainder in the following month. The balance in accounts payable on March 31 is $22,000. In addition, equipment costing $19,750 will be purchased for cash in April. Dividends totaling $4,000 will be paid in cash in June. The required minimum cash balance is $8,000. Assignment: Prepare a cash budget for the months of April, May and June.