=+Current assets as ofAugust 1 include cash of $50,000, marketable securities of $85,000, and accounts receivable of $635,000 ($500,000 from July sales and $135,000 from June sales). Sales on account for June and July were $450,000 and $500,000, respectively. Current liabilities as of August 1 include a $100,000, 15%, 90-day note payable due October 20 and $65,000 of ac¬

counts payable incurred in July for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. It is expected that $1,800 in dividends will be received in August. An estimated income tax payment of $39,000 will be made in September.

Santa Fe’s regular quarterly dividend of $12,000 is expected to be declared in September and paid in October. Management desires to maintain a minimum cash balance of $40,000.

Instructions