1. Budgeted sales for May are $480,000 and budgeted sales for June are $525,000. Cash sales are expected to be 40% of total sales for each month. The remaining sales will be on credit and Jitters expects to collect 70% of the credit sales in the month of sale and the remaining 30% in the month following the sale. All of the accounts receivable as April 30 will be collected in May. a. Calculate total cash collections from customers that Jitters expects to receive in May. b. Calculate budgeted accounts receivable as of May 31. 2. Jitters determined that $525,000 of inventory must be purchased in May. Jitters expects to pay 60% in the month of purchase and 40% the following month. Accounts payable as of April 30 will be paid in May a. Calculate the amount of cash disbursements (payments) for inventory for May 2. Jitters determined that $525,000 of inventory must be purchased in May. Jitters expects to pay 60% in the month of purchase and 40% the following month. Accounts payable as of April 30 will be paid in May a. Calculate the amount of cash disbursements (payments) for inventory for May. b. Calculate budgeted accounts payable as of May 31. 3. If Jitter's budgeted net income for May is $10,000, what amount will be shown as the ending balance in retained earnings on the May balance sheet? (No dividends will be declared or paid). Assets Cash $ 28,500 Accounts receivable 115,500 Inventory 236,250 Property and equipment, net of $1,255,000 accumulated depreciation 1,503,000 Total assets $ 1,883,250 Liabilities and Stockholders' Equity Accounts payable $ 612,000 Common stock 966,000 Retained earnings 305,250 Total liabilities and stockholders' equity $ 1,883,250