Submit your work for the following question. Do not leave Connect blank, input you answer to a$)$

The XYZ Company has planned the following sales for the next three months:

April May June

Budgeted Sales $$80,000$ $$50,000$ $$30,000$

Sales are made $20\%$ for cash and $80\%$ on account. From experience, the company has learned that a month's sales on account are collected according to the following pattern:

Month of sale $60\%$

First month following sale $30\%$

Second month following sale $8\%$

Uncollectible $2\%$

The company requires a minimum cash balance of $$5,000$ to start a month. The beginning cash balance in June is budgeted to be $$25,000.$

Required:

a$)$ Compute the budgeted cash receipts for June.

b$)$ The following additional information has been provided for June:

Inventory purchases $($all paid in June$)$ $$30,000$

Operating expenses $($all paid in June$)20,000$

Depreciation expense for June $10,000$

Dividends paid in June $6,000$

Prepare a cash budget in good form for the month of June, using this information and the budgeted cash receipts you computed for part a$)$ above. The company can borrow in any dollar amount and will not pay interest until July.