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

	April	May	June
Sales	70,000	60,000	80,000
Production	70,000	60,000	60,000

Required:

a.

Cash-related production costs are budgeted at $7.0 per unit produced. Of these production costs, 30% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $300,000 per month. The accounts payable balance on March 31 totals $390,000, 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 $16.0 each. Cash collections from sales are budgeted at 65% in the month of sale, 25% in the month following the month of sale, and the remaining 10% in the second month following the month of sale. Accounts receivable on April 1 totaled $720,000 ($110,000 from February's sales and $610,000 from Marchs sales) Prepare a schedule for each month showing budgeted cash receipts for Clay Corporation. (Do not round intermediate calculations.)