May on Sebastian the manager of Ariel's Treasures Limited has provided you with the forecasted income statement for the second quarter of 2021: April June Total Sales $64,000 $49,000 $62,000 $175,000 Cost of goods sold 34.300 22.500 28.200 85.000 Gross profit 29.700 26.500 33,800 20.000 Selling & administrative expense Selling expenses 6,000 7.800 9,200 23,000 Administrative expenses 6.500 9300 7600 23400 Total expenses 12.500 17100 16800 46400 Operating income 517 200 $9400 $12.000 $42600 The following information has also been provided Sales are 30% cash and 70% on credit godt sales are collected 60% in month of sale, 20% in month following sale 15% in the second month following the sale 59 are never collected The company maintains inventory levels of 40of the following month cost of goods sok july cost of goods sold is estimated to be 25,000 month Sales are 30% cash and 70% on credit Credit sales are collected 60% in month of sale, 20% in month following sale, 15% in the second month Eollowing the sale & 5% are never collected. The company maintains inventory levels of 40% of the following month cost of goods sold July's cost of goods sold is estimated to be $25,000. Inventory purchases are paid 60% in month of purchase & 40% in the following month. May's purchases are budgeted to be $24,780 The cash balance at May 31,2021 is expected to be $15,000. The company wants to maintain a cash balance of at least $15,000 at the end of each month. Dividends of $1,000 are to be paid in June 2021 The company plans to purchase equipment of $10,000 in May & $20,000 in June. The company has a line of credit with the local bank that allows them to borrow up to $50,000. The interest rate is 5% and the balance of the loan at May 30, 2021 is expected to be 50 The administrative expense includes $1,500 of depreciation each month Required: Prepare a cash budget for June 2021. You must show all work