The following information is available to assist you in preparing a company's cash budget. a. The cash balance on July 1 is $45,600. b. Actual sales for May and June and expected sales for July are as follows: Cash sales Sales on account May June July $ 76,000 $ 76,400 $ 90,800 $450,000 $569,000 $ 604,000 Sales 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 $288,000 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 $162,500, all of which will be paid in July. d. Selling and administrative expenses are budgeted at $495,000 for July. Of this amount, $88,800 is for depreciation. e. A new web server for the Marketing Department costing $83,500 will be purchased for cash during July, and dividends totaling $17,000 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.