Dreier Corporation reported sales of $280,000 in January, $320,000 in February, and $350,000 in March. The forecasted sales for April, May, June and July are $375,000, $425,000, $439,000, $461,000 respectively. The initial cash balance on April 1 is $60,000, and a minimum of $12,000 should be kept as a cash cushion as a company policy. Use the information below to develop a cash budget for the months of April, May and June. 1. Dreier predicts that 4% of its sales will never be collected, 30% of its sales will be cash sales, and the remainder will be collected in equal amounts during the following two months 2. The company receives other monthly income of $4,500 (except during May) 3. The expected purchases are 60% of the following months sales, and 36% are paid in cash while the remainder is paid in the subsequent month. 4. Monthly rent is $4,500 5. Wages and salaries are 22% of the average of the two previous months sales. 6. Cash dividends of $4,600 are declared and will be paid in May. 7. Long-term loan repayment of principal and interest of $6,800 is due in June 8. Additional equipment costing $18,500 is ordered and scheduled to be paid for in cash in May 9. Taxes of $8,250 are due in June. 10. The gas and eletricity bill was $3600 during January, and it is stipulated to rise by 3% every month during the year as per contract. It is paid in cash the month it is incurred.