Teno Company has the following information: Sales are: $420,000 in July, $460,000 in August, $500,000 in Actual sales in June are $350,000. Forecasted sales are: $420,000 in L September actions of cash from sales are as follows: 80% in the month of sale, 15% in the month following the sale, and the rest never collected. The cost of goods sold is 60% of current month's sales. The desired ending inventory level is the next month's cost of goods sold. The beginning inventory on 1 July is $252,000. The purchase of inventory in June is $252,000. Payment for purchases of inventory is made as follows: 80% in the same month of purchase, 20% in the month following the purchase. Other monthly cash expenses are $80,000. * Monthly depreciation for plant, property and equipment is $17,000. Cash balance on June 30 was $30,200. le company requires a minimum cash balance of $100,000 for each month and orrow or repay loans only in multiples of $1000. Assume that borrowing occurs ginning and repayments occur at the end of the month. Also assume that 11% per month is paid in cash at the end of each month. Ignore taxes. Required: Prepare cash budgets for July and August. (10 marks)