The controller of Feinberg Company is gathering data to prepare the cash budget for July, He plans to develop the budget from the following information:

a. Of all sales, 40% are cash sales. b. of credit sales, 45% are collected within the month of sale. Half of the credit sales collected within the month receive a 2% cash discount (for accounts paid within 10 days). 30% of credit sales are collected in the following month; remaining credit sales are collected the month thereafter. There are virtually no bad debts. c. Sales for the for the second two quarters of the year follow. (Note: The first 3 months are actual sales, and the last 3 months are estimated sales)

Month	Sales
April	$450,000
May	580,000
June	900,000
July	1,140,000
August	1,200,000
September	1,134,000

d. The company sells all that it produces each month. The cost of raw materials equals 26% of each sales dollar. The company requires a monthly ending inventory of raw materials equal to the coming month's production requirements. Of raw materials purchases, 50% is paid for in the month purchased. The remaining 50% is paid for in the following month. e. Wages total $105,000 each month and are paid in the month incurred. f. Budgeted monthly operating expenses total $376,000,of which $45,000 is depreciation and $6,000 is expiration of prepaid insurance (the annual premium of $72,000 is paid on January 1) g. Dividends of $130,000m declared on June 30, will be paid on July 15. h. Old equipment will be sold for $25,200 on July 4. i. On July 13, new equipment will be purchased for $173,000 j. The company maintains a minimum cash balance of $20,000 k. The cash balance on July 1 is $27,000

1. Prepare a cash budget for July. Give a supporting schedule that details the cash collection from sales.