quot;quot;One-more Coffee Co. (OCC) is in the process of preparing the budget for the third quarter of 2012. The following data has been gathered:

""One-more Coffee Co. (OCC) is in the process of preparing the budget for the third quarter of 2012. The following data has been gathered:  Account balances as of June 30 Cash $ 20,000 Accounts receivable 15,000 Inventory 47,250 Building and Equipment 200,000 Accounts payable -0-  Recent and forecasted sales May (actual sales) $ 75,000 June (actual sales) 80,000 July (budgeted sales) 82,000 August (budgeted) 90,000 September (budgeted) 100,000 October (budgeted) 112,000  Sales are 75% cash and 25% on credit. Credit amounts are all collected within the month after sale.  OCC’s gross margin averages 40% of revenues.  Operating expenses – all are paid before the end of the month. Salaries and wages $8,000 per month plus 5% of revenue as commissions Rent and property taxes $1,000 per month Other operating expenses 2% of revenues Depreciation $1,000 per month  OCC has no minimum inventory requirement. Their policy is to purchase on the 15th of each month the amount needed for the next month’s expected sales.  OCC Is negotiating the purchase of new equipment that will cost $127,000 and be installed in September. Terms are 50% to be paid in August and the rest in September.  The minimum cash balance required is $20,000. If needed, cash is borrowed as of the beginning of the month and all repayments are made when possible at the end of the month. The interest rate charged on these short-term borrowings is 12% per year, payable at the end of the month. Both borrowings and repayments are made in multiples of $1,000. Management does not want to borrow more cash than is necessary for operations. a. Prepare the following schedules and budgets:•Cash Budget (with budgeted financing)