SF Marvel, a retailer of small factor computer cases, has provided you with the following information:

	Budgeted Sales (units)
June 2021	1,100
July 2021	1,200
August 2021	1,500

1. SF Marvel sells each computer case for $100 and purchases each computer case for $70.
2. SF Marvel plans to maintain inventory on hand at the end of each month to be 20% of next months sales volume. You can assume this to be the situation at the end of May 2021.
3. 60% of sales are made on cash basis with the remaining 40% - on credit. All credit sales are collected in the month following the sale.
4. 50% of inventory purchases are made on cash basis with the remaining 50% - on credit. All credit purchases are paid in the month following the purchase.
5. The following cash expenses are incurred on a monthly basis: Rent ($3,500); Wages ($4,400); Utilities ($1,500); Insurance ($500). The business also recognises $2,000 of depreciation expense each month.
6. The monthly drawings by the owner of SF Marvel include: $1,000 cash and 1 computer case for personal use.
7. Every month the business pays $400 to pay off its bank loan.
8. The opening cash balance on July 1, 2021 is budgeted to be a cash deficit of $9,400.

Required:

Prepare a cash budget for SF Marvel for the month of July 2021.

(8 marks)

SF Marvel Cash Budget for the month ending July 31, 2021

	July 2021 ($)