PREPARING AN ACCOUNTS PAYABLE SCHEDULE Shetland, Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account:

April $468,000 May 514,000 June 520,000 Shetland typically pays 30 percent on account in the month of billing and 70 percent the next month.

Required:
. How much cash is required for payments on account in May?
. How much cash is expected for payments on account in June?
Cornerstone Exercise