The following Information Is avallable to assist you In preparing a company's cash budget.

a$.$ The cash balance on July $1$ is $$55,400.$

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

Sales on account are collected over a three$-$month perlod 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 $$340,000$ for July. Thirty percent of a month's Inventory purchases are pald during the month of

purchase. The accounts payable remaining from June's inventory purchases total $$173,500,$ all of which will be paid in July.

d$.$ Selling and administrative expenses are budgeted at $$510,000$ for July. Of this amount, $$55,100$ is for depreciation.

e$.$ A new web server for the Marketing Department costing $$83,000$ will be purchased for cash during July, and dividends totaling

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

f$.$ The company maintains a minimum cash balance of $$20,000.$ An open line of credit is avallable 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.

Complete this question by entering your answers in the tabs below.

Calculate the expected cash collections for July.

Calculate the expected cash disbursements for merchandise purchases for July.