Green Spaces Ltd. sells industrial lawn mowers for $2,500 each. The company needs a cash budget for the month of May. The following information is available: Actual sales for April and expected sales for May are shown below. The company has both a. 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. b. April May Cash $12,500 $27,500 Sales Sales on $57,500 $82,500 account Purchases of their merchandise inventory (the lawn mowers that they sell) will total $95,000 for May. 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 April were $50,000. Selling and administrative expenses are budgeted at $18,000 for May. Of this amount $3,000 is for depreciation. Equipment costing $44,000 will be purchased in May. Terms of the purchase are 50% down payment and the balance due in 60 days. Dividends of $4,000 and income tax installment payments of $3,000 are expected to be paid in May. The company must maintain a minimum cash balance of $5,000 at the end of C. d. e. f. each month. g. Any borrowings must be done at the beginning of the month and all borrowings can only be in increments of $1,000.(i.e. If they need $1,500, they must borrow $2,000.) There was no financing outstanding at the beginning of the month. The annual interest rate is 6% on any of the borrowings and is calculated and paid h. at the end of each month. i. The cash balance at the beginning of May is $7,200. REQUIRED: Prepare a cash budget for May