Madonna Company has budgeted sales revenues as follows:

June

Credit 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

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

The company wishes to maintain a minimum cash balance of $50,000 at the end of each month. The beginning cash balance on July 1 was $50,000.

Instructions:

Prepare a cash budget for the month of June.