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 July: $250,000 August: $105,000 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 July: $250,000 August: $105,000 Other budgeted expenses are: 1. Monthly Selling and Administrative Expenses - $50,000 (including $2,000 of depreciation expense) 2. Dividends of $103,000 will be paid in July 3. purchase of equipment in August for $30,000 cash The company wishes to maintain a minimum cash balance of $50,000 at the end of each month. The company borrows money from the bank at 8% interest if necessary to maintain the minimum cash balance. Borrowed money is repaid in months when there is an excess cash balance. The beginning cash balance on July 1 was $50,000. Assume that borrowed money in this case is for one month. 1. How much are the TOTAL cash collections for the month of July? (e.g. $100,000) How much are the TOTAL cash collections for the month of August? (e.g. $100,000) Question 13 How much are the total cash payments for purchases for he month of July? (cg.$100,000) How much are the total cash disbursements for the month of July? (e.g. $100,000 ) Question 16 0.5pts How much are the total cash disbursements for the month of August? (e.g. $100,000) Question 17 0.5pts How much money must be borrowed for the month of July to maintain the desired $50,000ending cash balance? (e.g. $100,000) Assuming the loan taken out in July was paid back in August, what is the ending cash balance for August? (e.g. $100,000 ). Hint: Don't forget the interest on the loan