D Use the following information for questions 20-21: Cruises, Inc. has budgeted sales revenues as follows: June July August Credit $135,000 $125,000 $90,000 sales Cash sales 90.000 255.000 195.000 Total sales $225,000 $380,000 $285,000 Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will be collected in the following month. In addition to inventory, other cash disbursements budgeted are: (a) selling and administrative expenses of $48,000 each month, (b) dividends of $103,000 will be paid in July, and (c) purchase of equipment in August for $30,000 cash. The company wishes to maintain a minimum cash balance of $50,000 at the end of each month. The company borrows money from the bank at 6% interest if necessary 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 1 was $50,000 and that no funds were borrowed prior to July. D Question 20 Determine the expected cash collections from customers for July, Question 21 3 pts 3 pts Assuming July cash collections of $400,000 (ignore your calculation above) and cash payments during July for inventory of $290,000 determine the expected borrowings during July. (hint: don't forget to factor in other budgeted cash expenditures described above.)