3. Rolling Wheel purchases bicycle components in the month prior to assembling them into bicycles. Assembly is scheduled 1 month prior to budgeted sales. Rolling Wheel pays 75% of component costs in the month of purchase and 25% of the costs in the following month. Component costs included in budgeted cost of sales are:

April May June July August

$5,000 $6,000 $7,000 $8,000 $8,000

What is Rolling Wheels budgeted cash payments for components in May?

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