Alto Company is in the process of preparing the second quarter budget for 2017, and the following data have been assembled:

The company sells a single product at a selling price of $40 per unit. The estimated sales volume for the next six months is as follows:

March	6,000 units	June	8,000 units
April	7,000 units	July	9,000 units
May	10,000 units	August	6,000 units

All sales are on account. The companys collection experience has been that 40% of a months sales are collected in the month of sale, 55% are collected in the month following the sale, and 5% are uncollectible. It is expected that the net realizable value of accounts receivable (accounts receivable less allowance for uncollectible accounts) will be $132,000 on March 31, 2017.

Managements policy is to maintain ending finished goods inventory each month at a level equal to 50% of the next months budgeted sales. The finished goods inventory on March 31, 2017 complied with the policy.

To make one unit of finished product, 3 pounds of materials are required. Managements policy is to have enough materials on hand at the end of each month to equal 40% of the next months estimated usage. The raw materials inventory on March 31, 2017 complied with the policy.

The cost per pound of raw material is $6, and 70% of all purchases are paid for in the month of purchase; the remainder is paid in the following month. The accounts payable balance on March 31, 2017 is $26,280.

Required:

In a spreadsheet,

1) Prepare a sales budget in units and dollars, by month and in total, for the second quarter (April, May and June) of 2017.

2) Prepare a schedule of cash collections from sales, by month and in total, for the second quarter of 2017.

3) Prepare a production budget in units, by month and in total, for the second quarter of 2017.

4) Prepare a materials purchases budget in pounds, by month and in total, for the second quarter of 2017.

5) Prepare a schedule of cash payments for materials, by month and in total, for the second quarter of 2017.