The owner of a plumbing supply company has requested a cash budget for June. After examining the records of the company, you find the following:

1. Cash balance on June 1 is $1,800.
2. Actual sales for April and May are as follows:

Line Item Description	April	May
Cash sales	$10,000	$18,000
Credit sales	28,900	35,000
Total sales	$38,900	$53,000

1. Credit sales are collected over a 3-month period: 30% in the month of sale, 40% in the second month, and 20% in the third month. The sales collected in the third month are subject to a 2% late fee, which is paid by those customers in addition to what they owe. The remaining sales are uncollectible.
2. Inventory purchases average 62% of a month's total sales. Of those purchases, 20% are paid for in the month of purchase. The remaining 80% are paid for in the following month.
3. Salaries and wages total $11,750 per month, including a $4,500 salary paid to the owner.
4. Rent is $4,100 per month.
5. Taxes to be paid in June are $6,780.

The owner also tells you that he expects cash sales of $18,600 and credit sales of $58,000 for June. No minimum cash balance is required. The owner of the company doesn't have access to short-term loans.