Athlete World is a sporting goods store. The data for use in preparing its forecast of cash needs for June are:

b. Sales are made 60 percent on credit and 40 percent for cash. All credit sales are collected in the month following the sale.

c. Athlete World's June expenses are estimated to be:
Salaries and wages expense . . . . . . . . . . . . . 20% of sales Rent expense . . . . . . . . . . . . . . . . . . . . . }4%\mathrm{ of sales All other cash expenses . . . . . . . . . . . . . . 6% of sales Depreciation expense . . . . . . . . . . . . . . . . . . $600 Gross margin . . . . . . . . . . . . . . . . . . . . . . . . 40% of sales

d. Athlete World buys all its inventory from companies on the West Coast and wants to maintain an inventory level equal to one-half the next month's sales. Payments for merchandise are made 50 percent during the month of purchase and 50 percent in the next month.

e. Other cash expenditures planned for June are:
1. The purchase of $\$ 8,000$ of furniture.
2. The payment of $\$ 5,000$ of dividends.

f. Athlete World desires to maintain a minimum cash balance of $\$ 10,000$. The store has an arrangement with a local bank whereby it can borrow money in multiples of $\$ 1,000$. Interest is charged on all loans at an annual rate of 10 percent and is assessed for a full quarter both in the quarter in which the money is borrowed and in the quarter in which the money is repaid. Interest is paid when the loan is repaid.
Prepare Athlete World's cash budget for June.

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a. Current assets (May 31): Cash... $22,000 Inventory 17.500 Accounts receivable 29.400 Property, plant, and equipment. 90,000 Accounts payable (merchandise purchases only).... 13,100 Recent and estimated future sales: May 49,000 June.... 57.000 52,000 July