Grenoble Enterprises had sales of $50,000 in March and $60,000 in April. Forecast sales for​ May, June, and July are $70,000​, $80,000​, and $100,000​, respectively. The firm has a cash balance of $5,000 on May 1 and wishes to maintain a minimum cash balance of $5,000. Given the following​ data, prepare and interpret a cash budget for the months of​ May, June, and July.

1. The firm makes 20% of sales for​ cash, 60% are collected in the next​ month, and the remaining 20% are collected in the second month following sale. ​
2. The firm receives other income of $2,000 per month. ​
3. The​ firm's actual or expected​ purchases, all made for​ cash, are $50,000​, $70,000​, and $80,000 for the months of May through​ July, respectively. ​
4. Rent is $3,000 per month.
5. Wages and salaries are 10% of the previous​ month's sales. ​
6. Cash dividends of $3,000 will be paid in June.
7. Payment of principal and interest of $4,000 is due in June. ​
8. A cash purchase of equipment costing $6,000 is scheduled in July. ​
9. Taxes of $6,000 are due in June.