# Question: Queensland Enterprises needs a cash budget for the month of

Queensland Enterprises needs a cash budget for the month of June. The following information is available:
The cash balance on June 1 is \$13,000.
Sales for May and June are \$40,000 and \$50,000, respectively. Cash collections on sales are 45 percent in the month of sale and 50 percent in the month after the sale; 5 percent of sales are uncollectible.
General expenses budgeted for June are \$20,000 (depreciation represents \$1,000 of this amount).
Inventory purchases will total \$40,000 in May and \$30,000 in June. The company pays for half of its inventory purchases in the month of purchase and for the other half the month after purchase.
The company will pay \$5,000 in cash for office furniture in June. Sales commissions for June are budgeted at \$3,000.
The company maintains a minimum ending cash balance of \$5,000 and can borrow from the bank in multiples of \$100. All loans are repaid after 60 days.
Prepare a cash budget for Queensland for the month of June.

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