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

Cash balance at June 1 is $736

Actual sales for April and May are as follows:

	April	May
Cash sales	$10,000	$18,000
Credit sales	28,900	35,000
Total sales	$38,9000	$53,000

Credit sales are collected overa three-month period: 40 percent in the month of sale, 35 percent in the second month, and 25 percent in the third month.

Inventory purchases average 70% of a month's total sales. Of those purchases, 20 percent are paid for in the month of purchase. The remaining 80 percent are paid for in the following month.

Salaries and wages total $11,750 per month, including $4,500 salary paid to the owner.

Rent is $4,100 per month

Taxes to be paid in June are $6,780.

Depreciation of $2,000 was recorded on the equipment The owner expects cash sales of $18,600 and credit sales of $54,000 for June. The owner requires a minimum cash balance of $5,000. The owner has access to a line of credit where up to $10,000 can be withdrawn.

Prepare a schedule of expected cash collections for June (5 marks)

	June

Prepare a schedule of expected cash payments for inventory purchases (5 marks)

	June

Prepare a cash budget for June. (15 marks)