QUESTION 16 Cruises, Inc. has budgeted sales revenues as folle ws June $125,000 255 000 380.000 $ 90,000 Credit sales Cash sales Total sales 135,000 90.000 225.000 $285 000 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 and 50% is paid in the month of purchase and 50% in the month folo ing purchase Budgeted i ve tory purchases ar June July August $300,000 240,000 105,000 Other cash disbursements budgeted (a) seling and administrative expenses of $48000 sach month ib) dividends of $103 00 sill be paid in July and ic) purchase of equipment in August for $30 000 cash bank at 6% interest The company wishes to maintain a minimum cash balance of $50 000 at the end o necessary to maintain the minimum cash balance Borowed r 1 was $50,000 Assume that borrowed money in this case is for one month each month The company borrows money from the money is repald in months when there is an excess cash balance The beginning cash balance on Juy Save All Ansiers