Cruises, Inc. has budgeted sales revenues as follows: August Credit sales Cash sales Total sales 90,000 $125,000 195000 $285.000 135,000 Past experience indicates that 60% of the credit sales will be colected in the month of sale and the remaining 40% will be collected in the following moth Purchases of inventory are all on credit and 50% is paid in the month of purchase and 50% in the month following purchase Budgeted inventory purchases are June July August $300,000 240,000 05,000 Other cash disbursements budgeted (a) selling and administrative expenses of $58,000 each month (b) dividends of $125,000 will be paid in July, and (e) purchase of equipment in August for $45,000 cash The company wishes to maintain a minimum cash balance of $65.000 at the end of each month. The company borrows 1 was $70,000 Assume that borrowed money in this case is for one month Instructions: Present the analysis in a table. Prepare a cash budget for the months of July and August Prepare separate schedules for expected collections from customers and expected payments for from the bank at 7 75% interest if to maintain the minimum cash balance Borrowed money is repaid in months when there is an excess cash balance. The beginning cash balance on July purchases of inventory