The following information pertains to your firm:

Sales for the next 5 months are expected to be as follows:

Your firm’s beginning cash balance on May 1 is $0. There are no beginning or ending inventories of any kind. Historically, half of revenues have been paid in cash at the time of sale. Credit sales are collected 50% in the month of sale, 30% in the month following sale, 15% in the second month following sale, and 5% are uncollectible. Direct materials are paid for in the month following sale, while all other costs are paid for as incurred.
Prepare a cash collections budget for May through July.
Prepare a cash disbursements budget for May through July.
Calculate the ending cash balance each month May through July.

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Selling price per unit $500 Direct materials cost per unit $ 80 Direct labor cost per unit $ 75 Variable overhead cost per unit $135 Fixed overhead per month $600,000 Period expenses per month $500,000