Jane Company has budgeted information as follows:

$\backslash$table$[[,$June,July,August$],[,,255,000,195,000],[$Cash Sales,,$145,000,90,000],[$Credit Sales,$135,000,400,000,285,000],[$Total Sales,$135,000,,]]$

Past experience indicates that $60\%$ of the credit sales will be collected in the month of sale and the remaining $40\%$ will be collected in the following month. Purchases of inventory are all on credit and $50\%$ is paid in the month of purchase and $50\%$ in the month following purchase. Budgeted inventory purchases are:

June $$300,000$

July $$250,000$

August $$105,000$

Other cash disbursements budgeted: $($a$)$ selling and administrative expenses of $$48,000$ each month, $($b$)$ dividends of $$103,000$ will be paid in July, and $($c$)$ purchase of equipment in August for $$30,000$ cash.

The company wishes to maintain a minimum cash balance of $$50,000$ at the end of each month. The company borrows money if necessary to maintain the minimum cash balance. Borrowed money is repaid in months when there is an excess cash balance. The beginning cash balance on July $1$ was $$50,000.$

Instructions

Upload a Word or Excel document with your answer. Prepare a cash budget for the months of July and August. Prepare separate schedules for expected collections from customers and expected payments for purchases of inventory. You may use your text with this problem to help with formatting your answer.$|$