A corporation supplies acetylene and other compressed gases…

A cоrpоrаtiоn supplies аcetylene аnd other compressed gases to industry. Data regarding the store's budgeted operations for August follows:The beginning cash balance is $1,000The $12,000 balance in Accounts Receivable on August 1 is from sales on account in July.Sales are budgeted at $200,000 for August.All sales are on account and collections are expected to be 30% in the month of sale, and 70% in the month following the sale.Purchases of merchandise are expected to be $180,000.Payment for merchandise inventory is made 20% in the month of purchase and 80% the following month. The Account Payable balance is projected to be zero on August 1.Other monthly expenses to be paid in cash are $50,300.Monthly depreciation is $10,000.The desired cash balance at the end of each month is $25,000.The company can borrow up to $50,000 from their local bank with interest due the following month.Required:Prepare a cash budget for August.