Garden Ltd. sells industrial lawn mowers for $2,000 each. The company needs a cash budget
for the month of June. The following information is available:
a.	Actual sales for May and expected sales for June are shown below. The company has both
	cash sales, and sales on account. Of the sales on account, 25% are collected in the month of
	sale, and 73% are collected in the month after sale. The remainder are uncollectible.
					May	June
				Cash Sales	$14,000	$24,000
				Sales on account	$60,000	$80,000
b.	Purchases of their merchandise inventory (the lawn mowers that they sell) will total
	$90,000 for June. Twenty percent of a month's inventory purchases are paid
	for during the month of purchase. The remaining 80% is paid for in the following
	month. Inventory purchases in May were $60,000.
c.	Selling and administrative expenses are budgeted at $24,000 for June. Of this
	amount $4,000 is for depreciation.
d.	Equipment costing $38,000 will be purchased in June. Terms of the purchase
	are 50% down payment and the balance due in 60 days.
e.	Dividends of $3,000 and income tax installment payments of $4,000 are expected
	to be paid in June.
f.	The company must maintain a minimum cash balance of $8,000 at the end of
	each month.
g.	Any borrowings must be done at the beginning of the month and all borrowings
	can only be in thousand dollar increments. (i.e. If they need $1,500, they must borrow $2,000.)
h.	The annual interest rate is 6% on any of the borrowings and is calculated and paid
	at the end of each month.
i.	The cash balance at the beginning of June is $9,000.
REQUIRED:	Prepare a cash budget for June.