Redding Company has budgeted sales revenues as follows: June July AugustCredit

Redding Company has budgeted sales revenues as follows: June July AugustCredit sales 135000 145000 90000Cash sales 90000 255000 195000Total sales 225000 400000 285000Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will be collected in the following month. Purchases of inventory are all on credit and 50% is paid in the month of purchase and 50% in the month following purchase. Budgeted inventory purchases are:June 300000July 250000August 105000Other cash disbursements budgeted: (a) selling and administrative expenses of $48000 each month (b) dividends of $105000 will be paid in July and (c) purchase of equipment in August for $30000 cash. The company wishes to maintain a minimum cash balance of $50000 at the end of each month.Instructions:Prepare a cash budget for the months of July and August.