Prepare a cash budget for the Ace Manufacturing Company, indicating receipts and disbursements for May, June, and July. The firm wishes to maintain at all times a minimum cash balance of $20,000. Determine whether or not borrowing will be necessary during the period, and if it is, when and for how much. As of April 30, the firm had a balance of $20,000 in cash. ACTUAL SALES FORECASTED SALES January $50,000 May $ 70,000 February 50,000 June 80,000 March 60,000 July 100,000 April 60,000 August 100,000 l Accounts receivable: 50 percent of total sales are for cash. The remaining 50 percent will be collected equally during the following two months (the firm incurs a negligible bad-debt loss). l Cost of goods manufactured: 70 percent of sales: 90 percent of this cost is paid the following month and the remaining 10 percent one more month later. l Selling, general, and administrative expenses: $10,000 per month plus 10 percent of sales. All of these expenses are paid during the month of incurrence. l Interest payments: A semiannual interest payment on $150,000 of bonds outstanding (12 percent coupon) is paid during July. An annual $50,000 sinking-fund payment is also made at that time. l Dividends: A $10,000 dividend payment will be declared and made in July. l Capital expenditures: $40,000 will be invested in plant and equipment in June. l Taxes: Income tax payments of $1,000 will be made in July.