The following information is available to assist you in preparing a company's cash budget. Complete this question by entering your answers in the tabs below.

Req $1$ and $2$

Req$3$

Calculate the expected cash collections for July.

Calculate the expected cash disbursements for merchandise purchases for July.

Total cash collections

Cash disbursements for merchandise purchases 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.

a$.$ The cash balance on July $1$ is $$43,200.$

b$.$ Actual sales for May and June and expected sales for July are as follows:

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 $$370,000$ 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 $$193,000,$ all of which will be paid in July.

d$.$ Selling and administrative expenses are budgeted at $$433,000$ for July. Of this amount, $$99,800$ is for depreciation.

e$.$ A new web server for the Marketing Department costing $$78,500$ will be purchased for cash during July, and dividends totaling

$$18,500$ will be paid during the month.

f$.$ 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:

Calculate the expected cash collections for July.

Calculate the expected cash disbursements for merchandise purchases for July.

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.