Green Valley Hospital has budgeted sales revenues as follows:

	June	July	August
Cash Revenues	90,000	255,000	195,000
Credit Revenues	135,000	145,000	90,000
Total Revenues	225,000	400,000	285,000

Past experience indicates that 60% of the credit sales will be collected in the month of service and the remaining 40% will be collected in the following month. 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	300,000
July	250,000
August	105,000

Other cash disbursements budgeted: (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 $90,000 cash. Also, monthly depreciation is $25,000 (not included in the selling and administrative expenses).

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 8% 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.

Schedule for Expected Collections from Insurance Carriers

Credit Revenues	July	August
June (135,000x40%)	54,000
July (145,000)	87,000	58,000
August (90,000)		54,000
Total credit Revenue collections	141,000	112,000

Schedule for Expected Payments from the purchase of supplies

Inventory Purchases	July	August
June (300,000)	150,000
July (250,000)	125,000	125,000
August (105,000)		52,000
Total Payments	275,000	177,500

Construct a Cash Budget for months of July and August? Please show work as well.