BMW INC. sells car fresheners to car dealers. The fresheners sell for $.25. BMW's Inc. has a CPA that has prepared a sales forecast for the 2^nd quarter of the current year:

UNITS

April	35,000
May	40,000
June	30,000

Based on past history the cash collection of sales has been as follows: 25 percent in the month of sale, 60 percent in the month following sale, and 15 percent in the second month following sale.

Required:

Compute projected cash receipts for the month of June.

3.) EASTER EGG, INC. produces baskets for Easter. EASTER EGG INC has estimated production & sales of baskets, in units, for the next 2 months as:

March April

Estimated production 42,000 48,000

Estimated sales 50,000 36,000

Each basket requires 0.25 pounds of reed. The cost of reed is $4.50 per pound. EASTER EGG INC wants to have 20% of the next month's materials requirements on hand at the end of each month.

Instructions

Prepare a direct materials purchases budget for the month of March.

(use excel and show formulas)