Wildhorse Company has budgeted sales revenues as follows: June July August Credit sales $40,000 $40,000 $35,000 Cash sales 30,000 60,000 50,000 Total sales $70,000 $100,000 $85,000 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 the remaining 50% in the month following purchase. Budgeted inventory purchases are as follows: June $84,000 July 60,000 August 30,000 Other budgeted cash disbursements: (a) selling and administrative expenses of $8,400 each month, (b) dividends of $30,000 will be paid in July and (c) purchase of a computer in August for $10,000 cash. The company wishes to maintain a minimum cash balance of $20,300 at the end of each month. The company borrows money from the bank at 9% interest, if necessary, to maintain the minimum cash balance. Borrowed money is repaid in months when there is an excess cash balance. The beginning cash balance on July 1 was $20,300. Assume that borrowed money, in this case, is for one month.