The Lissome Corporation is a merchandising company. You are going to prepare a short-term cash forecast for July. Selected financial data from Lissome for July, 2016 are reproduced below: Cash on hand, July 1, 2016 $ 4,000 A/R, July 1, 2016 4,000 Forecasted sales for July 30,000 Forecasted A/R, July 31, 2016 4,200 Inventory, July 1, 2016 5,000 Desired inventory, July 31, 2016 3,000 Depreciation expense 800 Miscellaneous outlays 2,200 Minimum cash balance desired 6,000 A/P, July 1, 2016 3,600 Additional information: 1. Gross profit equals 20% of cost of goods sold. 2. Lissome purchases all inventory on the first day of the month and receives it the following week. 3. Lissome pays 75% of payables within the month of purchase and the balance in the following month. 4. All remaining expenses are paid in cash Required: a. Calculate purchases for the month of July b. Now prepare the forecast using the format below; Beginning cash balance $4,000 Cash collections . Total cash available . Cash disbursements For: Purchases .. Miscellaneous outlays .. Total cash disbursements . Cash balance . Minimum cash balance desired $6,000 Excess (Deficit) cash