The following information is available from the controller's records for Penelope, Ltd.:
May $60,000 $20,000
June 70,000 30,000
July 80,000 25,000
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.