Past experience indicates that $70\%$ of the credit sales will be collected in the month of sale and the remaining $30\%$ will be collected in the following month.

Purchases of inventory are all on credit and $60\%$ is paid in the month of purchase and $40\%$ in the month following purchase. Budgeted inventory purchases are:

Othet cash disbursements budgeted include selling and administrative expenses of $$14,000$ each month Drridends of $$30,000w11$ be pad in Tuly, and purchase of a computer in August for $$3,000$ cash. The company wishes to mantain a minmum cash balance of $$20,000$ at the end of each month.

The compary borrows noney from the bank at $9\%$ interest if it is neces ary to mantain the minimurn cash balance and interest must be $p$ add each nonth whether there is a lo an rep ayment of not.

The begirning cash bat of $1$ is $$25,000.$

$25$ The loan balance as of July $1$ is $26,000$

Quations

$1$

Prepare separate schedules for expected collections from customers for the month of June and july

$2$

prepare expected payments for purchases of inventory for the month of June and July.

$3$

Preoare cash budget for the month july

$18$ Other cash disbursements budgeted include selling and administrative expenses of $$14,000$ each month.