The Following Information Is Available from the Controller's Records for Penelope,Ltd

question 49

Essay

The following information is available from the controller's records for Penelope,Ltd.:
$$\begin{array} { l c r } & \text { Sales } & \text { Purchases } \\\text { May } & \$ 60,000 & \$ 20,000 \\\text { June } & 70,000 & 30,000 \\\text { July } & 80,000 & 25,000 \\\end{array}$$
All sales are on credit.Records show that 80 percent of the customers pay during the month of the sale,15 percent pay the month after the sale,and the remaining 5 percent pay the second month after the sale.Purchases are all paid the following month at a 1 percent discount.Cash disbursements for operating expenses in July were $8,000.
Prepare a cash budget for July.