You have been asked to prepare a June cash budget for Brighton Company, a distributor of sports equipment. The following information is available about the company's operations: a. The cash balance on June 1 will be $43,200. bi Actual sales for April and May and expected sales for June are as follows: April May June Cash sales 35 68,000 $ 78,000 $ 88,000 Sales on account 416,000 566,000 616,000 ' Sales on account are collected over a threemonth period in the following ratio: 20% collected in the month of sale, 70% collected in the month following sale, and 8% collected in the second month following sale. The remaining 2% are uncollectible. c. Purchases of inventory will total $316,000 for June. 30% of a month's inventory purchases are paid during the month of purchase. The accounts payable remaining from May's inventory purchases total $166,000, all of which will be paid in June. d. Selling and administrative expenses are budgeted at $466,000 for June. Ofthis amount, $51,600 is for depreciation. These are paid in the period incurred. e, A new Web server for the Marketing Department costing $76,600 will be purchased for cash during June, and dividends totalling $7,400 will be paid during the month. f. The company must maintain a minimum cash balance of $21,600. An open line of credit is available from the company's bank to bolster the cash position, as needed. Required: 1. Prepare a schedule of expected cash collections for June. Brighton Company Cash Budget Collections on account: 2. Prepare a schedule of expected cash disbursements for materials during June to suppliers for inventory purchases. Brighton Company Schedule of Expected Cash Disbursements Payments to suppliers: May purchases (accounts payable) . . . . June purchases 260,800 Total cash payments $ 260,800 3. Prepare a cash budget for June. Indicate in the financing section any borrowing that will be needed during the month. Brighton Company Cash Budget For the Month of June Cash balance, beginning $ 43,200 Add cash receipts: Collections from customers 1, 128,320 Total cash available before current financing 1, 171,520 Deduct disbursements: Payments to suppliers for inventory Selling and administrative expenses 414,40 New web server 76,600 Dividends paid 7,400 Total disbursements 498,400 Excess (deficiency) of cash available over disbursements $ 673, 120 Financing: Borrowings Total financing OE Cash halance ending $ 673 120