ABC Ltd is a wholesaler. The management has been extremely worried about the entitys 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 comprise 80% credit sales and 20% cash sales.
• 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^st May 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.