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26. Archer Electronies Company's actual sales and purchiases for Apri and May are shown here along with forecast sales and purchases for June through September: Complete cash bualget (Lot2) Part 2 Financial Anatysis and Planning The company makes 20 percent of its sales for eash and 80 pereent on eredit. Of the credit sales, 50 percent are collected in the month after the sale and 50 pereent are collected two months later. Archer pays for 20 percent of its purchases in the month after purchase and 80 percent two months after. Labor expense equals is percent of the current month's sales, Overhead expense equals $12,500 per month. Interest payments of $32,500 are due in June and September. A cash dividend of $52,500 is scheduled to be paid in June. Tax payments of $25,500 are due in June and September. There is a scheduled capital outlay of $350,000 in September. Archer Electronics' ending cash balance in May is $22,500. The minimum desired cash balance is $10,500. Prepare a schedule of monthly cash receipts, monthly cash payments, and a complete monthly cash budget with borrowing and repayments for June through September. The maximum desired cash bal. ance is $50,500. Excess cash (above $50,500 ) is used to buy marketable securities. Marketable securities are sold before borrowing funds in case of a cash shortfall (less than $10,500 )