Nelson Company is preparing its budget for the third quarter. The cash balance on June 30 was $30,000. The company wants a minimum cash balance of $12,000, otherwise borrowing is undertaken at the beginning of the month at 10% interest. The interest expense payment and repayment of principal is not made until the entire amount borrowed can be repaid at once. Additional budgeted data are provided here:

	July	Aug	Sep
Cash collections	$30,000	$58,000	$54,000
Cash payments:
Purchases of direct materials	25,000	26,000	21,000
Direct labor	10,000	12,000	11,000
Operating expenses	4,000	6,000	4,000
Capital expenditures	12,000	13,000	11,000

Prepare the cash budget for July and August, using the following format.

	July	August	Total
Beginning cash balance	-
Cash receipts
Cash available
Cash payments:
Purchases of direct materials
Direct labor
Operating expenses
Capital Expenditures
Total cash payments
Ending cash balance before financing
Minimum cash balance desired
Projected cash excess (deficiency)
Financing:
Borrowing
Principal repayments
Total effects of financing
Ending cash balance