154 Homework 24-3 155 Patient Company prepares monthly cash budgets. Relevant data follows for 2023: 156 April May 157 Sales $420,000 $440,000 158 Direct Materials Purchases 145,000 $130,000 159 Direct Labor $80,000 $100,000 160 Manufacturing Overhead $70,000 $80,000 161 Selling & Administrative Expenses 162 $ 78,000 $82,000 163 Sales are 40% cash and 60% credit. Credit collections are expected to be 50% in the month of the sale, 30% in the 164 first month following the sale, and 15% in the second month following the sale. 60% of direct materials purchases 165 are paid in cash in the month of the purchase, and the balance is paid in the month following the purchase. 166 All other items above are paid in the month incurred except for depreciation of $5,000 in Manufacturing 167 Overhead for both April and May, and depreciation of $4,000 in Selling and Administrative Expenses for 168 both April and May. 169 170 Other data: February 2023 credit sales of $150,000; March 2023 credit sales of $120,000. 171 Purchases of direct materials for March of 2023 of $110,000. 172 Other payments of $35,000 for dividends in May. 173 The company's cash balance on April 1, 2023 is expected to be $40,000. 174 175 Prepare a cash budget for April and May. (Show computations.)