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 inwentory are all on account with $5096$ is paid in the month of purchase and $5096$ paid in the month

following purchase. Budgated imentory purchases are as follows:

Other cash disbursements budgated: $($a$)$ selling and administrative evonses of $$47,000$ each month, $($b$)$ dividends of $$109,000$ will be

paid in July, and $($c$)$ purchase of aquipmant in August for $$30,000$ cash.

The company's policy is to maintain a minimum cash balance of $$50,000$ at the end of ach month. The company borrows monay from

the bank at $6\%$ interest if necessary to maintain the minimum cash balance. Porrowed monsy is rapaid in monthe when there is an

evesse cash balance. The beginning cash balance on July $1$ was $$50,000.$ Assume that borrowed monsy in this case is for one month

Prepare separate schadules for expected collections from customers and expected payments for purchases of imentory. $($Do not

leove any answer field blank. Enter $0$ for amounts.

Prspars a cash budget for the months of July and Buzust. $($Do not leave any answer field blank. Enter O for amounts.$)$

CHEYENNE, INC

Cash Budget

For the Two Months of July and Aupust