Prepare a cash budget for the month ended May 31, 2019. Campton Company anticipates a cash balance of $97,000 on May 1, 2019. The following budgeted transactions for May 2019 present data related to anticipated cash receipts and cash disbursements: 1. For May, budgeted cash sales are $73,000 and budgeted credit sales are $513,000. (Credit sales for April were $450,000.) In the month of sale, 40% of credit sales are collected, with the balance collected in the month following sale.
2. Budgeted merchandise purchases for May are $293,000. (Merchandise purchases in April were $240,000.) In the month of purchase, 70% of merchandise purchases are paid for, and the balance is paid for in the following month.
3. Budgeted cash disbursements for salaries and operating expenses for May total $178,000.
4. During May, $25,000 of principal repayment and $4,000 of interest payment are due to the bank.
5. A $20,000 income tax deposit is due to the federal government during May.
6. A new delivery truck will be purchased during May for $7,800 cash and an $8,000 note payable. Depreciation for May will be $560.