The owner of Burr, a supplies wholesale company has requested a cash budget for August. After examining the records of the company, you find the following: June July August September Projected sales $200,000 $220,000 $260,000 $250,000 Burr estimates that it will collect 40% of its sales in the month of sale, 35% in the month after the sale, and 22% in the second month following the sale. Three percent of all sales are estimated to be bad debts. Burr Cost of goods sold is 75% of sales; requires ending inventory to be 10% of the following month COGS. Burr pays for 30% of merchandise purchases in the month purchased and 70% in the following month. General operating expenses are budgeted to be $20,000 per month, including depreciation of $2,000. Burr pays operating expenses in the month incurred. Burr makes loan payments of $3,000 per month of which $400 is interest and the remainder is principal. Required: 1. Prepare a schedule for cash collection in August. 2. Prepare a merchandise purchase budget for July and August. 3. Prepare a schedule for cash payment in August. 4. Assume cash balance at July 31 is budgeted at $3,000 and the required minimum cash balance is also $3,000, prepare a cash budget for August.