Needing help understanding to preparing this budget for this information.

I have included an image of how the budget should look.

I am more interested in the Finance Manager Part.

Part 1 - Private Information Known Only to the Finance Manager

As the Finance Manager, you are responsible for the Accounting and Finance Department of SRS Educational Supply Company. You manage accounts receivable and collections, accounts payable, general ledger, and personally handle the cash management, borrowing and investing activities of the company. As a member of the SRS senior management team, you are also actively involved in developing the master budget. You personally are evaluated based on how well you forecast cash flows.

Historic collection data (cash collections of sales):

• All sales are on credit, with no discounts, and due in 15 days.
• The company has found, however, that only 30% of a month's sales are collected by month-end and the remaining 70% is collected in the following month.

Historic payment data:

• Purchases of inventory are paid for as follows: 50% in the month of purchase and the remaining 50% in the following month.
• Other operating expenses are paid in cash during the month they are incurred.

Other planned outlays of cash:

• During July, purchases of automated equipment totaling $200,000 for cash.*
• New computers for the office will be purchased during August for $90,000 cash.*
• The company plans on declaring and paying dividends of $50,000 during July.

Cash management policies:

• Desired minimum ending cash balance each month: $35,000
• The company has a line of credit with a bank.
• The company can borrow in increments of $1,000 at the beginning of each month.
• The interest rate on these loans is 1% per month and we assume a simple interest calculation (not compounded).
• At the end of each month, the company pays the bank as much of the loan as possible (increments of $1,000), while still retaining at least $35,000 in cash.
• For simplicity, the company pays the bank the interest related to the borrowing for one month at the beginning of the next month. For example, the interest on any borrowing in June is paid in July.

Your specific responsibility as a member of the management team is to prepare a cash budget by month and in total (July - September) and a Budgeted Income Statement for the quarter ending September 30. In addition, you must help the team compile the Budgeted Balance Sheet as of September 30. Finally, you may be asked to provide information to other team members that may help them complete their budgets and you may need to seek information from other team members that will help you complete a budget.

* Depreciation on newly acquired assets will be made as an adjustment at the end of the fiscal year.

Depreciation $25,000 per month All SRS Educational Supply material taken from Janet A. Samuels and Kimberly M. Sawers (2017) "SRS Educational Supply Company: An Instructional Budget Project." Issues in Accounting Education: November 2017, Vol. 32, No. 4, pp. 51-59.Advertising 685,000 Insurance 27,000 Depreciation 228,000 Total operating expenses 2,804,000 Net operating income $ 178,000 Interest expense 25,000 Net income $ 153,000 The following forecasts are known within the company (although each department may have better information than these forecasts): Sales forecasts range July $550,000 - $650,000 August $900,000 - $980,000 September $450,000 - $550,000 October $360,000 - $420,000 November $350,000 - $480,000 December $350,000 - $480,000 Purchasing cost range (July - December) Cost of goods sold 42% - 50% Operating expense range (July - December) Shipping 4% - 5% of sales Other expenses 8% - 9.5% of sales Salaries and wages $85,000 to $95,000 per month Advertising $45,000 - $58,000 per month Insurance $2,000 - $3,000 per monthSALES MANAGER PRIVATE INFORMATION July August September October Sales PURCHASING MANAGER PRIVATE INFORMATION Part 1 Information Cost of Merchandise as a % of Sales Desired Ending Inventory as a Percentage of Next Month's Cost of Sales OPERATION MANAGER PRIVATE INFORMATION Part 1 Information Shipping Expenses as a Percent of Sales Other Expenses as a Percent of Sales Salaries and Wages (per month) Advertising costs (per month) Insurance costs (per month) Depreciation Expense (per month) FINANCE MANAGER PRIVATE INFORMATION Part 1 Information Percent Sales Collected in Month of Sale Percent Sales Collected in Month after Sale Percent of Inventory Purchases paid in month of purchase Percent of Inventory Purchases paid in month after purchase Percent of Operating Expenses paid in month of purchase Percent of Operating Expenses paid in month after purchase Desired minimum ending cash balance each month Borrow in increments of Monthly interest rate on borrowings (not compounded) Other planned Outlays of Cash July August September Capital Expenditures Dividends SRS Educational Supply Company Balance Sheet June 3 Assets Current assets: Cash 40,000 Accounts receivable 340,000 Inventory 50,000 Prepaid insurance 18,000 Total current assets 448,000 Buildings and equipment (net) 860,000 TOTAL ASSETS 1,308,000 Liabilities and Equity Liabilitys Accounts payable $ 130,000 Notes Payable Total Liabilities 130,000 Stockholder's equity Capital stock 420,000 Retained earnings 758,000 Total Equity 1,178,000 TOTAL LIABILITIES AND EQUITY $ 1,308,000