River Crossing Inc. Cash Budget Project Includes Cash Collection Schedule, Cash Disbursement Schedule, and Cash Budget River Crossing, Inc. manufactures rafts, oars, kayaks, and other outdoor sport equipment. River Crossing has budgeted sales revenues as follows: June July August Credit sales $140,000 $130,000 $ 100,000 Cash sales 80,000 260.000 200,000 Total sales $220.000 $390,000 $300.000 Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will be collected in the following month. Purchases of inventory are all on credit and 50% is paid in the month of purchase and 50% in the month following purchase. Budgeted inventory purchases are: June $320,000 July 250,000 August 110,000 Other cash disbursements budgeted: (a) selling and administrative expenses of $50,000 each month, (b) dividends of $100,000 will be pald in July, and (c) purchase of equipment in August for $40,000 cash. River Crossing wishes to maintain a minimum cash balance of $60,000 at the end of each month. The company borrows money from the bank at 4% interest if necessary to maintain the minimum cash balance. Borrowed money is repaid in months when the excess cash balance exceeds management's minimum desired cash balance plus enough to cover any borrowed amount plus Interest. The beginning cash balance on July 1 was $62,000. Instructions: 1. Prepare a separate schedule for expected collections from customers 2. Prepare a separate schedule for expected payments for purchases of inventory 3. Prepare a cash budget for the months of July and August, and