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, $40$ percent are cash sales.

b$.$ Of credit sales, $45$ percent are collected within the month of sale. Half of the credit sales collected within the month receive a $2$ percent cash discount $($for accounts paid within $10$ days$),$ Thirty percent 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 second two quarters of the year follow. $($Note: The first three months are actual sales, and the last three months are estimated sales.$)$

Sales

April $450000$

May $580000$

June $900000$

July $1140000$

August $1200000$

September $1134000$

d$.$ The company sells all that it produces each month. The cost of raw matenals equals $26$ percent 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, $50$ percent are paid for in the month of purchase. The remaining $50$ percent is paid for in the following month.

C$.$

Wages total $$105,000$ each month and are paid in the month incurred.

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 $1).$

z

Dividends of $$130,000,$ declared on June $30,$ will be paid on July $15.$

Old equipment will be sold for $$25,200$ on July $4.$

$1.$ On July $13,$ new equipment will be purchased for $$173,000.$

$/-$ The company maintains a minimum cash balance of $$20,000.$

k$.$ The cash balance on July I is $$27,000.$

Required:

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