Grenoble Enterprises had sales of $50,000 in March and $60,000 in April. Forecast sales for May, June, and July are $70,000, $80,000, and $100,000, respectively. The firm has a cash balance of $5,000 on May 1 and wishes to maintain a minimum cash balance of $10,000.

Given the following data, prepare and interpret a cash budget for the months of May, June, and July.

1. The firm makes 30% of sales for cash, 60% are collected in the next month, and the remaining balance is collected in the second month following the sale.
2. The firm's actual or expected purchases, all made for cash, are $50,000, $70,000, and 580,000 for the months of May through July, respectively.