Preparation, evaluation and use of cash budget Description: Grenoble Enterprises had sales of $50,000 in March and $60,000 in April. Forecasted sales in May, June, and July are $70,000, $80,000, and $100,000, respectively. On May 1, the company has a cash balance of $5,000 and wants to maintain a minimum cash balance of $5,000. Using the following data, prepare and interpret a cash budget for the months of May, June, and July in a detailed and organized table. The company makes 20% of its sales in cash, collects 60% the following month and collects the remaining 20% in the second month after the sale. The company receives another income of $2,000 per month. The amounts of the company's actual or expected purchases, all in cash, are $50,000, $70,000, and $80,000 in the months of May through July, respectively. The rent is $3,000 per month. Salaries and salaries correspond to 10% of sales from the previous month. Cash dividends of $3,000 will be paid in June. A principal and interest payment of $4,000 will be made in June. A cash purchase of equipment costing $6,000 is scheduled in July. Taxes of $6,000 will be paid in June