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

a$.$ Current assets $($May$,31)$:

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

c$.$ Athletic World's June expenses are estimated to be:

d$.$ Athletic World buys all its inventory from companies on the West Coast and wants to maintain an inventory level equal

to one$-$half of the next month's cost of good sold. Payments for merchandise are made $50\%$ during the month of purchase

and $50\%$ in the next month.

e$.)$ cash expenditures planned for June are:

$(1)$ the purchase of $$7,000$ of furniture

$(2)$ The payment of $$9,000$ of dividends.

f$.$ Athletic 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 $10\%$ and is

assessed for a full quarter both in the quarter in which the money borrowed and in the quarter in which the money is

repaid. Interest paid when the loan is repaid.

Required:

Prepare Athletic World's cash budget for June.