(Budgeted sales and S&A; other computations) Larson Mfg. has projected cost of goods sold (CGS) for June 2006 of $1,200,000. Of this amount, $75,000 represents fixed overhead costs. Total variable costs for the company each month average 70 percent of sales. The company’s cost to retail (CGS to sales) ratio is 60 percent, and the company normally shows a 15 percent rate of net income on sales. All purchases and expenses (except deprecia¬ tion) are paid in cash: 65 percent in the month incurred and 35 percent in the following month. Depreciation is $37,500 per month.

a. What are Larson’s expected sales for June?

b. What are Larson’s expected variable selling and administrative costs for June?

c. What are Larson’s total fixed costs? How much of this is selling and ad¬ ministrative fixed cost?

d. Larson normally collects 55 percent of its sales in the month of sale and the rest in the next month. What are expected cash receipts and dis¬ bursements related only to June’s transactions?