Alpha-Tech, a rapidly growing distributor of electronic components, is formulating its plans for 20x5. Carol Jones, the firms marketing director, has completed the following sales forecast.

	AlphaTech 20X5 Forecasted Sales (in thousands)
Month	XXXXXXXX	Sales
January	XXXXXXXX	$7,000
February	XXXXXXXX	8,000
March	XXXXXXXX	7,000
April	XXXXXXXX	9,500
May	XXXXXXXX	10,500
June	XXXXXXXX	12,000
July	XXXXXXXX	13,000
August	XXXXXXXX	13,000
September	XXXXXXXX	14,000
October	XXXXXXXX	14,000
November	XXXXXXXX	13,000
December	XXXXXXXX	15,000

Phillip Smith, an accountant in the Planning and Budgeting Department, is responsible for preparing the cash flow projection. The following information will be used in preparing the cash flow projection.

Alpha-Techs excellent record in accounts receivable collection is expected to continue. 60% of billings are collected the month after the sale, and the remaining 40% two months after.

The purchase of electronic components is Alpha-Techs largest expenditure, and each months cost of goods sold is estimated to be 30% of sales.70% of the parts are received by Alpha-Tech one month prior to sale, and 30% percent are received during the month of sale.

Historically, 75% of accounts payable has been paid one month after receipt of the purchased components, and the remaining 30% has been paid two months after receipt.

Hourly wages and fringe benefits, estimated to be 30% of the current months sales, are paid in the month incurred.

General and administrative expenses are projected to be $16,170,000 for the year. The breakdown of these expenses is presented in the following schedule. All cash expenditures are paid uniformly throughout the year, except the property taxes, which are paid in four equal installments at the end of each quarter.

	20X5 Forecasted General & Administrative Costs (in thousands)
Salaries and fringe benefits	XXXXXXXXXXXXXX	$3,200
Promotion	XXXXXXXXXXXXXX	4,300
Property Taxes	XXXXXXXXXXXXXX	1,480
Insurance	XXXXXXXXXXXXXX	1,680
Utilities	XXXXXXXXXXXXXX	1,500
Depreciation	XXXXXXXXXXXXXX	4,010
Total	XXXXXXXXXXXXXX

Income-tax payments are made at the beginning of each calendar quarter based on the income of the prior quarter. Alpha-Tech is subject to an income-tax rate of 40%. Alpha Tech's operating income for the first quarter of 20X5 is projected to be $4,000,000. The company pays 100% of the estimated tax payment.

Alpha Tech maintains a minimum cash balance of $515,000. If the cash balance is less than $515,000 at the end of each month, the company borrows amounts necessary to maintain this balance. All amounts borrowed are repaid out of the subsequent positive cash flow .The projected April 1, 20X5, opening balance is $515,000

Alpha-Tech has no short-term debt as of April 1, 20x5.

Alpha-Tech uses a calendar year for both financial reporting and tax purposes.

Required:

Prepare a cash budget for Alpha-Tech by month for the second quarter of 20x5. For simplicity, ignore any interest expense associated with borrowing. (Negative amounts should be indicated by a minus sign.) Answer format below...

	Alpha-Tech
	Cash budget
	For the second quarter of 20X5
	April	May	June
Beginning balance
Collections:
February Sales
March Sales
April Sales
May Sales
Total receipts
Total cash available
Disbursements:
Accounts payable
Wages
General & Administrative
Property Taxes
Income taxes
Total disbursements
Cash balance
Cash borrowed
Cash repaid
Ending balance