The following table lists the data from the budget of Cornell Inc. 40% the companys sales are for cash on the nail; the other 60% are paid for with a one-month delay. The company pays all its credit purchase with a one-month delay. Credit purchases in June were $360,000, and total sales in June were $1,050,000.

Cornell Inc. Sales, purchase, and other budgets

	june	July	August	September
Total Sales	$ 1,050,000	$1,400,800	$1,783,500	$1,396,300
Purchases of material
For cash		306,192	306,064	263,112
For credit	360,000	459,288	534,096	394,668
Selling and admin. expenses		348,600	375,620	337,150
Income taxes		115,000	115,000	115,000
Dividends		50,000	50,000	50,000
Equipment purchase		200,000	200,000	0

We make these assumptions to simplify the analysis:

* Cornell Inc. has an open line of credit with its bank, which can be used as needed to bolster the cash position.

* The company desires to maintain a $110,000 minimum cash balance at the end of each month. Therefore, borrowing must be sufficient to cover the cash shortfall and to provide for the minimum cash balance of $110,000.

* All borrowings and repayments must be in multiples of $1,000 amounts, and interest is 4 percent per annum.

* Interest is computed and paid on the principal during the borrowing period.

* All borrowings take place at the beginning of a month, and all repayments are made at the end of a month. The company will take a loan at the beginning of July, repay some portion of the loan at the end of August, and should be able to pay off the remaining balance of the loan at the end of September. You have to figure out the amount of loan taken at the beginning of July.

* The company pays the selling and administrative expenses, income taxes, dividends, and pays for equipment purchase at the end of a month.

Please complete this cash budget.

Cornell Inc. Cash Budget For the Month Ended September 30, 2019 Month July August September $180,000 1 Cornell Inc. 2 Sales, purchase, and other budgets 3 June July August September 4 Total sales $ 1,050,000 $1,400,800 $ 1,783,500 $ 1,396,300 5 Purchases of material 6 For cash 306,192 306,064 263,112 7 For credit 360,000 459,288 534,096 394,668 8 Selling and admin. expenses 348,600 375,620 337,150 9 Income taxes 115,000 115,000 115,000 10 Dividends 50,000 50,000 50,000 11 Equipment purchase 200,000 200,000 0 12 13 14 Schedule of Expected Cash Collections July August September 15 16 17 Accounts receivable, 6/30/2019 18 July sales ($1,400,800) 19 August sales ($1,783,500) 20 September sales ($1,396,300) 21 Total cash collections 22 23 24 25 26 27 Accounts payable, 6/30/2018 28 July purchases 29 August purchases 30 September purchases 31 Total cash disbursement 32 Cash balance, beginning Add: Receipts: Collections from customers Total cash available (a) Less: Disbursements: Direct materials Selling and admin. Equipment purchase Dividends Income tax Total disbursements (b) Minimum cash balance Total cash needed [C] Cash surplus (deficit) (a) - [c] Finance: Borrowing Repayment Interest Total effect of financing (d) Cash balance, ending [(a)-(b) + (d)] Schedule of Expected Cash Payments July August September Cornell Inc. Cash Budget For the Month Ended September 30, 2019 Month July August September $180,000 1 Cornell Inc. 2 Sales, purchase, and other budgets 3 June July August September 4 Total sales $ 1,050,000 $1,400,800 $ 1,783,500 $ 1,396,300 5 Purchases of material 6 For cash 306,192 306,064 263,112 7 For credit 360,000 459,288 534,096 394,668 8 Selling and admin. expenses 348,600 375,620 337,150 9 Income taxes 115,000 115,000 115,000 10 Dividends 50,000 50,000 50,000 11 Equipment purchase 200,000 200,000 0 12 13 14 Schedule of Expected Cash Collections July August September 15 16 17 Accounts receivable, 6/30/2019 18 July sales ($1,400,800) 19 August sales ($1,783,500) 20 September sales ($1,396,300) 21 Total cash collections 22 23 24 25 26 27 Accounts payable, 6/30/2018 28 July purchases 29 August purchases 30 September purchases 31 Total cash disbursement 32 Cash balance, beginning Add: Receipts: Collections from customers Total cash available (a) Less: Disbursements: Direct materials Selling and admin. Equipment purchase Dividends Income tax Total disbursements (b) Minimum cash balance Total cash needed [C] Cash surplus (deficit) (a) - [c] Finance: Borrowing Repayment Interest Total effect of financing (d) Cash balance, ending [(a)-(b) + (d)] Schedule of Expected Cash Payments July August September