How do prepare a cash budget for the months:
Credit sales for July, $30,000, August 24,000, and September 18,000
Cash sales July $18,000, August 51,000, and Sepember 39,000
Total sales July $48,000, August 75,000, and Septbember $57,000

Past 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 on credit and 50% is paid in the month of purchase and 50% in the month following purchase. Budgeted inventory purchases are $65,000 in Juyly, $45,000 in August, and $21,000 in September.