The following additional information is available:

a$.$ Sales are $100\%$ on account and the company expects to collect $50\%$ in the month of sale, $40\%$ in the month following sale and $10\%$ in the month after that.

b$.$ Direct material purchases are paid $30\%$ in the month of purchase and $70\%$ in the month after purchase.

c$.$ Sales for May were $$201,000$ and sales in June were $$277,000.$

d$.$ The company purchased $$90,000$ of direct materials in June.

e$.$ Direct labour is paid in the month the costs are incurred.

f$.$ Manufacturing overhead includes $$10,000$ of depreciation every month. The remaining costs are paid in the month incurred.

g$.$ Selling and administrative expenses include $$5,000$ of depreciation per month. The remaining cost are paid in the month incurred.

h$.$ In July the company collected $$4,000$ on a notes receivable.

i$.$ In August the company sold old equipment for $$6,000$ cash.

j$.$ In August the company purchased new equipment for $$20,000$ cash.

k$.$ The cash balance on July $1$ is expected to be $$50,000.$

l$.$ The company maintains a minimum cash balance of $$41,000$ per month.

Prepare a cash budget for July.

What is the beginning cash balance for July?

What is the total collections on accounts receivable for July?

HINT: Produce a cash collections schedule to determine this amount!

What is the total of all other miscellaneous cash collected during the month.

HINT: consider other cash collections such as from notes receivable and the sale of equipment, if applicable.

What is the total cash available for July?

What is the total payment $($cash disbursement$)$ for direct materials for July?

What is the total payment $($cash disbursement$)$ for direct labour for July?

What is the total payment $($cash disbursement$)$ for overhead for July?

What is the total payment $($cash disbursement$)$ for selling and administrative for July?

What is the total payment $($cash disbursement$)$ for all other expenses for July?

What is the total disbursements for July?

What is the excess $($deficiency$)$ of cash available over needs?

NOTE: if there is a deficiency enter your number as a negative $($preceded by a minus sign$)$ or in brackets.

Does the company need to borrow funds in order to meet their minimum cash requirements?

Enter either Y for YES or N for NO