6) The special order will be on account and the customer is not expected to pay until June. Zigby's management plans to compensate by intensifying collections efforts on their other customers by sending bills out sooner. Management feels these efforts will result in collection of 20% of the credit sales in the month of sale. (This will be in addition to the cash sales for the month). The remainder of credit sales will be collected in the subsequent month. All yin \"we-a 4* -' I *- to be collected in Am]. May special order is expected to be collected in June Current month's cash sales (from connect} Current month's credit sales collected 20% of current monrs credit sales Previous month's credit sales collected 80% of revious months sales Special order collected in June Total cash receipts Calculation of Cash receipts from customers: April May June Total budgeted sales $ 520,000 $ 540,000 $ 522,500 Cash sales 30% 156,000 162,000 156,750 Sales on credit 70% $ 364,000 $ 378,000 $ 365,750 Total cash receipts from customers April May June Current month's cash sales $ 156,000 $ 162,000 $ 156,750 Collections of receivables 364,000 364,000 378,000 Total cash receipts $ 520,000 $ 526,000 $ 534,750 ZIGBY MANUFACTURING Cash Budget April, May, and June 2019 April May June Beginning cash balance $ 42,000 $ 59,790 $ 87,020 Cash receipts from customers 520,000 526,000 534,750 Total cash available 562,000 585,790 621,770 Cash payments for: Raw materials 211,300 212,400 209,300 Direct labor V 182,240 178,840 176,970 Variable overhead 32,160 31,560 31,230 Sales commissions 41,600 43,200 41,800 Sales salaries 3,200 3,200 3,200 General & administrative salaries 14,000 14,000 14,000 Dividends 12,000 Loan interest 140 Long-term note interest 3,570 3,570 3,570 Purchases of equipment 132,000 Purchase of land 0 0 0 Total cash payments 488,210 498,770 612,070 Preliminary cash balance 73,790 87,020 9,700 Additional loan (loan repayment) (14,000) 32,300 Ending cash balance $ 59,790 $ 87,020 $ 42,000ZIGBY MANUFACTURING General and Administrative Expense Budget April, May, and June 2019 April May June Total Salaries 14,000 14,000 14,000 42,000 Interest on long-term note 3,570 3,570 3,570 10,710 Total budgeted G&A expenses $ 17,570 17,570 17,570 $ 52,710ZIGBY MANUFACTURING Selling Expense Budget April, May, and June 2019 April May June Total Budgeted sales 520,000 V 540,000 522,500 Sales commission percent 8% 8% 8% Sales commissions 41,600 43,200 41,800 126,600 Sales salaries 3,200 3,200 3,200 9,600 Total budgeted selling expenses 44,800 $ 46,400 $ 45,000 $ 136,200