Grenoble Enterprises had sales of $49,900 in March and $59,700 in April. Forecast sales for May, June, and July are $69,500,$80,400, and $99,800, 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,61% are collected in the next month, and the remaining 19%

are collected in the second month following sale.

(2) The firm receives other income of $1,800

per month.

(3) The firm's actual or expected purchases, all made for cash, are $49,700, $69,900,

and $80,100 for the months of May through July, respectively.

(4) Rent is $2,700 per month.

(5) Wages and salaries are

9 % of the previous month's sales.

(6) Cash dividends of $3,000

will be paid in June.

(7) Payment of principal and interest of $3,900

is due in June.

(8) A cash purchase of equipment costing $5,700

is scheduled in July.

(9) Taxes of $6,300 are due in June.