2. ReddingCompanyhasbudgetedsalesrevenuesasfollows:JuneJulyAugustCreditsales1350

2. ReddingCompanyhasbudgetedsalesrevenuesasfollows:JuneJulyAugustCreditsales13500014500090000Cashsales90000255000195000Totalsales225000400000285000Pastexperienceindicatesthat60%ofthecreditsaleswillbecollectedinthemonthofsaleandthe remaining40%willbecollectedinthe followingmonth.Purchasesofinventoryarealloncreditand50% ispaidinthemonthofpurchaseand50%inthemonthfollowingpurchase.Budgetedinventory purchasesare:June300000July250000August105000Othercashdisbursementsbudgeted:(a)sellingand administrativeexpensesof$48000 eachmonth(b)dividendsof$105000 willbepaidinJulyand(c) purchaseofequipmentinAugustfor$30000 cash. Thecompanywishestomaintainaminimumcashbalanceof$50000 attheendofeachmonth.InstructionsPrepareacashbudgetforthemonthsofJulyandAugust.