Quiz 5 It is August 1, 2007. A firm expects sales over the next 4 months to be as follows: Month August September October November Sales Amount $130,000 $80,000 $90,000 $95,000 Sales in June and July were $100,000 and $120,000 respectively. Twenty five percent of these sales will be collected in the month of sale, 35% will be collected in the first month after sale, and 40% will be collected two months after sale. A 3% discount is given for accounts paid in the first month after sale. The firm purchases inventory of 70% of next month’s expected sales for cash. Wages, taxes, and expenses are $45,000 per month. Currently, $8,000 of cash is on hand. A minimum balance of $15,000 is required. Complete a cash budget for August, September, and October.