Preparation of a Cash Budget Javert Company provided the following information about its operations in May and June The cash balance on June 1 is $31,000 Actual sales for May and estimated sales for June are as follows: May June Cash sales $ 50,000 $ 70,000 Credit sales $ 350,000 $ 380,000 Total sales $ 400,000 $ 450,000 Credit sales are collected over a two-month period based on the following estimates 40% collected in the month of the sale and 60% collected in the month following the sale The inventory balance at the beginning of June was $41,000. At the end of June, the inventory balance was $49,000 Purchases of inventory will total $240,000 for June 70% of the purchase is paid during the month of the purchase, and the remaining 30% is paid in the month following the purchase. The accounts payable remaining from May's inventory purchases total $60,000 and all of it will be paid in June. Variable selling and administrative expenses are budgeted to be 20% of the month's sales revenue Fixed selling and administrative expenses are budgeted to be $66,000 for June, and this amount already includes $12,000 for monthly depreciation. A purchase of equipment with cash that costs $68,000 is planned near the end of June. Cash dividends of $16,000 will be paid during June The company maintains a minimum cash balance of $30,000. An open line of credit of up to $300,000 is available from the company's bank as needed On June 1, there were no borrowings on this line of credit Instructions: Prepare a cash budget for the month of June. Indicate in the financing section any borrowing that will be needed during the month. Assume that any interest will not be paid until the following month. Utilize the table below to complete your cash budget with descriptions and amounts. Then, answer the questions listed after that related to financial statement amounts