Grenoble Enterprises had sales of $49,700 in March and$59,900 in April. Forecast sales for May, June, and July are $70,500,$80,300,and$100,300,respectively. The firm has a cash balance of $5,300 on May 1 and wishes to maintain a minimum cash balance of $5,300.Given the following data, prepare and interpret a cash budget for the months of May, June, and July.(1) The firm makes 20% of sales for cash, 60% are collected in the next month, and the remaining 20% are collected in the second month following sale.(2) The firm receives other income of $2,100 per month.(3) The firm's actual or expected purchases, all made for cash, are $50,100,$70,100,and $80,00 for the months of May through July, respectively.(4) Rent is $3,200 per month.(5) Wages and salaries are11%of the previous month's sales.(6) Cash dividends of$3,200will be paid in June.(7) Payment of principal and interest of$4,400 is due in June.(8) A cash purchase of equipment costin $5,900is scheduled in July.(9) Taxes of $6,100 are due in June.

Complete the first month of the cash budget for Grenoble Enterprises below:

March		April		May		June		July
Sales
Cash sales (30%)
Lag 1 month (65%)
Lag 2 months (5%)
Other income
Total cash receipts

	March		April		May		June		July
Disbursements
Purchases
Rent
Wages and salaries
Dividends
Principal and interest
Purchase of new equipment
Total cash disbursements

March April May June July

Net cash flow

Add: Beginning cash

Ending cash

Minimum cash

Required total financing (notes payable)