You have been asked to prepare a Cash Budget for Melnick Company for July 2021. Melnick is a MERCHANDISING company. The following information is available:

• The cash balance on July 1 is $30,000
• All sales are on account. Actual sales for May and June and expected sales for July are as follows:

	May	June	July
Sales on Account	$780,000	$640,000	$520,000

• Sales are collected as follows: 40% in the month of sale and 60% in the month following sale.
• Purchases of inventory will total $280,000 for July. Thirty percent of a months inventory purchase are paid during the month of purchase. The remaining seventy percent is paid the following month. Junes inventory purchases totaled $360,000.
• Labour costs during July are estimated to be $118,000
• Selling and administration expenses are budgeted at $125,000 for July. Of this amount, $12,000 is for depreciation.
• New equipment costing $60,000 will be purchased for cash during July.
• Dividends of $25,000 will be paid during July.
• The company maintains a minimum cash balance of $20,000
• Melnick Company has an open line of credit allowing them to borrow up to $100,000 at any time to meet cash shortages.

Required:

Prepare a Cash Budget for July indicating any financing that may be required.