Please help me calculate the cash collection number, the disembursements to suppliers #, and the planned borrowing amount

Budgeted Revenues and Costs Sales Revenues Administrative Expense Selling & Marketing Costs Other Non-Manufacturing Costs Direct Labor Costs

July

$2,400,000 1,000,000 200,000

100,000 600,000

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Part 1: Preparing Cash Budget. 15 points.

Doctor Strange Corporation wants to prepare a cash budget for the upcoming month of July. Available information is as follows:

The cash balance as of June 30 is $90,000.

The firm generally collects 40% of its receivables in the month of sale, 50% in the month after, and the remaining 10% in the second month after the month of sale. Sales in May totaled $3,200,000, all credit sales. In June they totaled $2,700,000, all credit sales. $2,000,000 of the July sales are expected to be credit sales. The remaining are expected to be cash sales.

The firm pays its suppliers 10% in the month of purchase, and 90% in the following month (two-month schedule of payments to suppliers). June purchases of supplies were $2,700,000. Purchases from suppliers in July are expected to be $1,500,000.

20% of the Administrative Expense is Depreciation Expense (of office buildings etc).

The firm expects dividend payments to shareholders of $100,000 and equipment purchases of $500,000 in July.

The firms policy is to maintain a minimum cash balance of $60,000 at all times, and can borrow from its bank to achieve that balance if needed.