Pina Colada, Inc. has budgeted sales revenues as follows: June July August Credit sales $139,000 $129,000...

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Pina Colada, Inc. has budgeted sales revenues as follows: June July August Credit sales $139,000 $129,000 $ 99,000 Cash sales 99,000 Total sales $238,000 250,000 $379,000 192,000 $ 291,000 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 account with 50% is paid in the month of purchase and 50% paid in the month following purchase. Budgeted inventory purchases are as follows: June July $300,000 222,000 August 108,000 Other cash disbursements budgeted: (a) selling and administrative expenses of $49,000 each month, (b) dividends of $108,000 will be paid in July, and (c) purchase of equipment in August for $31,000 cash. The company's policy is to maintain a minimum cash balance of $50,000 at the end of each month. The company borrows money from the bank at 6% interest if necessary to maintain the minimum cash balance. Borrowed money is repaid in months when there is an excess cash balance. The beginining cash balance on July 1 was $50,000. Assume that borrowed money in this case is for one month Pina Colada, Inc. has budgeted sales revenues as follows: June July August Credit sales $139,000 $129,000 $ 99,000 Cash sales 99,000 Total sales $238,000 250,000 $379,000 192,000 $ 291,000 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 account with 50% is paid in the month of purchase and 50% paid in the month following purchase. Budgeted inventory purchases are as follows: June July $300,000 222,000 August 108,000 Other cash disbursements budgeted: (a) selling and administrative expenses of $49,000 each month, (b) dividends of $108,000 will be paid in July, and (c) purchase of equipment in August for $31,000 cash. The company's policy is to maintain a minimum cash balance of $50,000 at the end of each month. The company borrows money from the bank at 6% interest if necessary to maintain the minimum cash balance. Borrowed money is repaid in months when there is an excess cash balance. The beginining cash balance on July 1 was $50,000. Assume that borrowed money in this case is for one month