Kingbird Restaurant Supply Company has budgeted sales revenues as follows: June July August Credit sales $30,000 $30,000 $25,000 Cash sales 20,000 50,000 40,000 $80,000 $65,000 Total sales $50,000 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 the remaining 50% in the month following purchase. Budgeted inventory purchases are as follows: June $65,000 July 50,000 20,000 August Other budgeted cash disbursements: (a) selling and administrative expenses of $7,000 each month will be paid in cash, exclusive of depreciation, (b) dividends of $20,000 will be paid in July and (c) purchase of a computer in August for $6,000 cash The company wishes to maintain a minimum cash balance of $10,000 at the end of each month. The company borrows money from the bank at 8% interest, 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 $10,000. Assume that borrowed money, in this case, is for one month SUB Prepare a schedule for expected collections from customers. Schedule of Expected Collections from Customers Credit sales July June $ July August Total collections $ August