Clay Corporation has projected sales and production in units for the second quarter of the coming year as follows:

	April	May	June
Sales	63,000	53,000	73,000
Production	66,500	56,500	56,500

Required:

a.

Cash-related production costs are budgeted at $6.45 per unit produced. Of these production costs, 35% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $230,000 per month. The accounts payable balance on March 31 totals $320,000, which will be paid in April. Prepare a schedule for each month showing budgeted cash disbursements for Clay Corporation.

b.

Assume that all units are sold on account for $15.35 each. Cash collections from sales are budgeted at 50% in the month of sale, 20% in the month following the month of sale, and the remaining 30% in the second month following the month of sale. Accounts receivable on April 1 totaled $643,000 ($103,000 from February's sales and $540,000 from Marchs sales) Prepare a schedule for each month showing budgeted cash receipts for Clay Corporation.