Herberts and Company has planned the following sales for the next four months:

		March	April	May	June
	Total budgeted sales.............	$50,000	$70,000	$90,000	$60,000

Herberts sales are all on account,and their months sales are collected according to the following:

	Month of sale..........................................................	70%
	First month following month of sale..........................	20%
	Second month following month of sale......................	8%
	Uncollectible...........................................................	2%

Herbert and Company requires a minimum cash balance of $4,000 to start a month. If Herbert has a cash balance less than $4,000, they borrow cash to get to a $4,000 balance. If they have a cash balance greater than $4,000 they invest the amount over $4,000.

Assume the following budgeted data for June:

	Purchases.......................................................	$52,000
	Selling and administrative expenses.................	$10,000
	Depreciation..................................................	$8,000
	Equipment purchases......................................	$15,000
	Cash balance, beginning of June......................	$4,000

1. You must prepare a cash budget for June that shows any borrowing needed during June. Herbert can borrow in any dollar amount, but will not pay any interest until the following month.

2. Show what the Accounts Receivable balance will be at June 30^th?