The following information is available to assist you in preparing a company's cash budget. a. The cash balance on July 1 is $53,200, b. Actual sales for May and June and expected sales for July are as follows: Cash sales Sales on account May June July $ 75,000 509,000 $88,200 $410,000 $574,000 609,000 Soles on account are collected over a three month period as follows: 20% collected in the month of sale, 60% collected in the month following sale, and 18% collected in the second month following sale. The remaining 2% is uncollectible, c. Purchases of inventory will total $318,000 for July, Thirty percent of a month's Inventory purchases are paid during the month of purchase. The accounts payable remaining from June's inventory purchases total $172,000, all of which will be paid in July. d. Selling and administrative expenses are budgeted at $525,000 for July. Of this amount, $57700 is for depreciation e. A new web server for the Marketing Department costing $82,000 will be purchased for cash during July, and dividends Totaling $12,000 will be paid during the month. 1 The company maintains a minimum cash balance of $20.000. An open line of credit is available from the company's bank to Increase its cash balance as needed. Required: 1. Calculate the expected cash collections for July 2. Calculate the expected cash disbursements for merchandise purchases for July 3. Prepare a cash budget for July. Indicate in the financing section any borrowing that will be needed during the month. Assume that any interest will not be paid until the following month