Pronghorn, Inc. has budgeted sales revenues as follows:

		June		July		August
Credit sales		$142,000		$127,000		$	90,000
Cash sales		93,000		251,000			194,000
Total sales		$235,000		$378,000		$	284,000

Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will be collected in the following month. Purchases of inventory are all on account with 50% is paid in the month of purchase and 50% paid in the month following purchase. Budgeted inventory purchases are as follows:

June		$302,000
July		226,000
August		109,000

Other cash disbursements budgeted: (a) selling and administrative expenses of $55,000 each month, (b) dividends of $105,000 will be paid in July, and (c) purchase of equipment in August for $39,000 cash. The companys policy is to maintain a minimum cash balance of $50,000 at the end of each month. The company borrows money from the bank at 6% interest if necessary to maintain the minimum cash balance. Borrowed money is repaid in months when there is an excess cash balance. The beginning cash balance on July 1 was $50,000. Assume that borrowed money in this case is for one month.

Prepare separate schedules for expected collections from customers and expected payments for purchases of inventory

Prepare a cash budget for the months of July and August.