Shamrock Restaurant Supply Company has budgeted sales revenues as follows: Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will be collected i the following month. Purchases of inventory are all on credit and 50% is paid in the month of purchase and the remaining 50% in the month following purchase. Budgeted inventory purchases are as follows: Other budgeted cash disbursements: (a) selling and administrative expenses of $8,300 each month will be paid in cash, exclusive of depreciation, (b) dividends of $25,000 will be paid in July and (c) purchase of a computer in August for $10,000 cash. The company wishes to maintain a minimum cash balance of $15,200 at the end of each month. The company borrows money from the bank at 9% 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 $15,200. Assume that borrowed money, in this case, is for one month. a1 Prepare a schedule for expected collections from customers. Your answer is correct. Prepare a schedule for expected payments for purchases of inventory. SHAMROCK RESTAURANT SUPPLY COMPANY Cash Budget For the Months of July and August July August $ $