Cash budgeting provides the General Manufacturers Ltd with information that is relevant to the achievement of its financial obligations. The information provided is critical to the organization's forward planning approach. During 2014 the following information was extracted from the company's records

January - 2,300,000

February - 2,400,000

March - 1,800,000

April - 2,000,000

May - 1,900,000

June - 2,200,000

July - 2,500,000

1. Information from the company's records revealed that70% of purchases are paid for cash, 20% is paid for the month after purchase, and 10% the next month

2. Fixed operating expenses amount to $2,200,000 monthly. Included in this figure is monthly depreciation of $200,000

3. Taxation for the first quarter of 2014 amounting to $550,000 is to be paid in the first month of the second quarter of 2014

4. Insurance of $125,000 is due monthly and was not included in the operating expense figure

5. In May 2014, the company sold one of the motor vehicles for $580,000, while a debt for $390,000 that was written of in 2012 was recovered in June 2014

6. Information from the companys record revealed that 50% of sales are done for cash, 30% is collected the following month and the remainder the following month. The salesmen are paid 5% of the total sales collection for each month as commission

7. The company will receive $4,350 in April from the sale of property

8. An investment amounting to $4,000,000 held at Jamaica financial Services will be collected in May 2014, while dividends amounting to $2,500,000 will be paid to shareholders the same month.

9. The company is to received funds from an insurance claim amounting to $4,500,000 for a vehicle that was written off in an accident. This amount is to be received as follows: $2,000,000 in May 2014; $1,500,000 in June 2014 and the balance in July 2014

10. In February, 201 the company acquired a new machine costing $5,400,000. The agreement with the distributor was that the company should make a deposit of $1,000,000 in February and the balance paid off in 2 equal instalments over the next 2 months.

11. At the end of March 2014, the company had a bank overdraft amounting to $362,400

Required

a. A sales collection summary showing cash and credit sales separately for the second quarter of 2014

b. A purchases disbursement summary showing cash and credit purchases separately for the second quarter of 2014

c. A cash budget for the second quarter of 2014 (clearly show amounts for cash sales, credit sales, cash purchases, credit purchases and totals)