Problem 7:

_The Fraley Company, a merchandising firm, has planned the following sales for the next four months: March April May June Total budgeted sales. . 50,00070,00090,00060,000 Sales are made 40% for cash and 60% on account. From experience, the company has learned that a month's sales on account are collected according to the following pattern: The company requires a minimum cash balance of 4,000 to start a month. Required: E. Compute the budgeted cash receipts for June. F. Assume the following budgeted data for June as seen below. Using this data, along with your answer to part (E) above, how much borrowing is needed during the month of June