After Class Practice 5-2 Grow Master is formulating its plan for the coming year. Budgeted Sales, cash receipts, and production for the second quarter are: Sales March April $1,265,000 May 1,375,000 June 1,740,000 July 1,650,000 Material Direct Cash Receipts Purchases Labor Cash Factory Overhead Costs $385,000 $1,034,000 470,000 $345,000 $200,000 1,050,000 515,000 375,000 $240,000 1,510,000 570,000 420,000 $250,000 . . . 75% of material purchases are paid for in the month of purchase and the remaining 25% in the month following purchase. Budgeted purchases for March are $385,000 Operating expenses are expected to be $1,550,000 annually, including $346,000 of depreciation. All expenditures are paid monthly, with the exception of property taxes, which are paid in four equal installments at the end of each quarter. Budgeted annual property taxes are $136,000. First quarter income taxes are budgeted to be $128,000 and paid in April. Grow Master maintains a minimum cash balance of $50,000. If the cash balance is less than $50,000 at the end of the month, the company borrows against its 12% line of credit in order to maintain the balance. All borrowings are made at the beginning of the month, and all repayments are made at the end of the month in $1000 increments. Accrued interest is paid in full with each principal repayment. The budgeted cash balance on April 1 is $50,000 Prepare a cash budget for the second quarter. (ck figures: Budgeted May payments for materials, $503,750; Budgeted April cash disbursements, $1,210,750;Ending cash balance April, $50,250; Ending cash balance June, $50,570)