It is August 1, 2019. A firm expects sales over the next 4 months to be as follows:

Month Sales Amount

August $130,000

September $80,000

October $90,000

November $95,000

Sales in June and July were $100,000 and $120,000 respectively. Twenty five percent of these sales will be collected in the month of sale, 35% will be collected in the first month after sale, and 40% will be collected two months after sale. A 2% discount is given for the accounts paid on the month of sale. The firm purchases inventory of 70% of next months expected sales for cash. Wages, taxes, and expenses are $40,000 per month. Depreciation in August, September, and October is $24,000, $25,000 and $26,000, respectively. Currently, $8,000 of cash is on hand. A minimum balance of $12,000 is required. Complete a cash budget for August, September, and October.