The Following Information Concerning Sherwood Ltd $\bullet$ Sixty Percent (60 $\bullet$ Fifty-Five Percent (55

The following information concerning Sherwood Ltd.has been made available for the development of cash and other budget information for the months of July, August, and September.
Selected balances at July 1^st are expected to be:

The budget is to be based on the following assumptions:
$\bullet$ Sixty percent (60.0%)of the billings are collected in the month of the sale; 25% are collected in the month following the sale; 10% are collected in the 2^nd month following the sale and 5% are estimated to be uncollectible
$\bullet$ Fifty-five percent (55.0%)of all product purchases are paid for in the month purchased, with the remaining 45% paid in the month following the purchase.Each unit of product costs $22.
$\bullet$ Selling, general and administrative expenses, of which $2,000 is depreciation, are equal to 25% of the current month's sales dollar.These expenses are paid for in the month incurred.
$\bullet$ The Board of Directors of Sherwood Ltd.has declared a cash dividend totaling $75,000 that is to be paid in August.
$\bullet$ Sherwood Ltd.has a considerable investment portfolio that provides investment income each month of $12,500.
$\bullet$ Sherwood Ltd.is required to pay an installment on their current year's income tax assessment in July.The amount due is $12,000.
Actual and projected sales and purchases are as follows:

Prepare a cash budget for the months of July and August, including a cash receipts and cash disbursements schedule.