Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is collected in the month of sale, 25% is collected the month after the sale, and 5% is collected the second month after the sale. How much cash will be collected in August if sales are estimated as $75,000 in June, $65,000 in July, and $90,000 in August? The minimum cash requirement is sat at $50,000 for the next month.

Required

1. Calculate the total cash receipt in the month of August.
2. What shall the treasury manager of Halifax Shoes do with the surplus (if any) or to meet the deficit (if any)?