Question (14 Marks) Consider the following information that will assist you in preparing a cash budget for PITPIR COMPANY for the month of June: The cash balance on June 1st is expected to be $10,000. Traditionally, 60% of all sales are cash sales collected in the same month as the sale; the remaining 40% of all sales are collected in the month following the sale. Also, 70% of the purchases of merchandise are paid for in the same month as the purchase; the remaining 30% of the purchases are paid for in the month following the purchase. The following expenses are expected to be incurred in the month of June: Additional Information: The company pays a commission to their sales manager equal to 5% of monthly sales revenue. The commission is paid in the month following the month to which it relates. The company has purchased a new insurance policy with a total annual cost of $2,400. The insurance contract calls for this to be paid in equal monthly installments. The company plans on purchasing a new computer system for $13,000. The full amount will be paid in July. However, in June, the company plans on selling their old computer system for $5,000 cash proceeds. Required: Prepare a Cash Budget for PITPIR COMPANY for the month of JUNE. Note: Provide your answer on the cash budget worksheet provided in your answer package or on your own working paper. Show supporting calculations (where applicable) for amounts reported on your cash budget. CASH BUDGET