ABC Ltd is a wholesaler. The management has been extremely worried about the entity's cash position over the last few years. In January, they sought your advice and asked you to prepare a cash budget for the forthcoming month of May. The business has provided the following information to assist in this task.

Estimated total sales for the next six months to 30 June, 2019 are as follows:

January

February

March

April

May

June

Total sales

$ 152,500

$ 171,250

$ 177,500

$ 185,000

$ 167,500

$ 157,500

Total sales comprise80% creditsales and20% cashsales.

Cash is received immediately on cash sales.

Analysis of past records has shown that credit sales are collected over a three-month period, with 50% being collected in the month of sales, 30% in the next month and the remaining in the following month.

Projected expenditure during January to June are as follows:

-Purchases of goods for resale are made on credit. The entity receives one month credit on these purchases. The expected purchases for March $71,000, April $80,000, May $54,000 and June $48,000.

-An inventory check at the end of last year, a total of $45,000 of inventory, valued at cost is considered obsolete. The ABC Ltd is currently negotiating the sale of this inventory for $9,500 and expects cash payment during May.

-ABC Ltd has agree to purchases new inventory-handling equipment. The cost of $105,200 is payable in two equal payments in April and May.

-The monthly depreciation of the new inventory handling equipment will be $2,000.

-Business expected to sell the old equipment for $5,000 in May.

-Rent will be $ 5,500 per month, paid monthly and one month in advance.

-Utility expenses will be $2,000 in May but the amount will be paid in June.

-Monthly wage expense will be $ 20,500 and paid at the end of each month.

-ABC Ltd currently negotiating a marketing campaign with an advertising agency. The cost will be $6,300 in May and $7,700 in June. Payment will be made in cash.

-It is estimated that the cash balance at 1^stMay will be $16,000.

Required:

1.Prepare a schedule showing receipts from credit customers for the months of April, May and June.

2.Prepare a cash budget for May only.