Cleano Products Limited distributes cleaning supplies. The company's controller has prepared budgeted financial statements for each month of the first quarter before he fell ill. You have been asked to prepare budgeted financial statements for the month of April in his absence$.$ The following information has been assembled to assist you.

The company's general ledger showed the following balances as at March $31,2005$:

$\backslash$table$[[$Cash$,$$$29,000$

Assume that a minimum cash balance of $$25,000$ is to be maintained. Also assume that all borrowings are effective at the beginning of the month and all repayments are made at the end of the month of repayment. Interest is paid only at the time principal is repaid.

The interest rate is $6$ percent. All loans and repayments must be made in multiples of one thousand dollars.

Required:

Compute April cash collections from sales. Show all your calculations.

Prepare the cash budget for the month of April. Show all your calculations.

Prepare, in good form, a budgeted income statement for April. Show all your calculations.

Prepare, in good form, a budgeted balance sheet for April $30,2005.$ Show all your calculations.

$\backslash$table$[[$April$,700,000],[$May$,400,000],[$June$,400,000]]$

Credit sales are $90$ percent of total sales. Eighty percent of credit sales are collected in the month following the sale and $20$ percent in the second month following the sale. The average gross profit on sales is $40$ percent.

The policy is to acquire enough inventory each month to equal the following month's projected sales. All purchases of inventory are paid for in the month following the purchase.

Commissions are $20$ percent of sales. All other expenses, excluding amortization, are estimated to be $$60,000$ per month. Amortization is $$2,500$ monthly. All expenses are paid in the month incurred.

In April, the company is planning to pay $$55,000$ for equipment purchased in February.