Question 1: Cash Budget - Version B (24 marks) Sushi House has budgeted sales revenues as follows: Cash sales Credit sales Total sales June July August $ 24,000 85,000 $109.000 $20,000 $30,000 80.000 $100,000 72.000 $102,000 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 credit. 70% of purchases is paid in the month of purchase and 30% in the month following purchase. Budgeted inventory purchases are: June July August Other cash disbursements budgeted: $45,000 43,000 40,000 selling and administrative expenses of $54,000 each month, which includes $10,000 depreciation. Dividends of $30,000 will be paid in July, and purchase of a computer in August for $3,000 cash. The beginning cash balance on July 1 was $25,000. The company wishes to maintain a minimum cash balance of $20,000 at the end of each month. The company borrows money from the bank at 12% annual interest if necessary to maintain the minimum cash balance. Borrowed money and interest is repaid in months when there is an excess cash balance. nstructions: Start with a schedule of cash collections for July and August to support the cash budget. (6 marks)