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3. Clay Corporation has projected sales and production in units for the second quarter of coming year as follows: month. So are paid in thion

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3. Clay Corporation has projected sales and production in units for the second quarter of coming year as follows: month. So are paid in thion costs are bude April May June Sales 50,000 40,000 60,000 Cash-related production costs are hunderted at Production 60,000 50,000 50,000 costs, 40% are paid in the month in which they are incurred and the balance in the following per unit produced. Of these production month. Selling and administrative expenses will amount to $100.000 per month. The accounts payable balance on March 31 totals $190,000, which will be paid in April All units are sold on account for $14 ench Cash collections from sales are budgeted at 60% in the month of sale, 30% in the month following the month of sale, and the remaining 10% in the second month following the month of sale Accounts receivable on April 1 totaled $500,000 (590,000 from February's sales and $410,000 from March's sales). Required: a. Prepare a schedule for each month showing budgeted cash disbursements for Clay Corporation b. Prepare a schedule for each month showing budgeted cash receipts for Clay Corporation, April May June Production units Cash required per unit Production costs Cash disbursements: June April May Production costs this month (40%) Production costs prior month (60%) Selling and administrative Total disbursements June April May Sales units Sales price Total sales Cash receipts: June April May February sales March sales April sales May sales June sales Total receipts

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