Colosimo Company started business on January 1, 2016. The company estimated that sales for the first six months would be as follows:

Month		Units		Dollars
January		10,000		$ 50,000
February		8,000		40,000
March		15,000		75,000
April		17,000		85,000
May		22,000		110,000
June		30,000		150,000

The company sells all items on account and expects collections of accounts receivable to be as follows: 60% in the month of the sale, and the remaining 40% in the month after the sale.

Required:

Compute the expected cash collections during the months of January, February, March, April, May and June.

The company has decided that finished goods inventory at the end of each month should ideally be equal to 40% of next months sales. What should budgeted production be for each of the first four months?

It takes two pounds of raw material to make one unit of finished product. The company wants to keep an ending inventory of raw material equal to 30% of next months production needs. How many pounds of raw material should be purchased in each of the first three months?

The raw material costs $2 per pound. The company pays for 70% of its purchases during the month of purchase and the remainder in the following month. How much cash will be disbursed during the month of March for the purchase of raw material?

The projected cash balance on March 1 is $13,500. What is the estimated cash balance at the end of the month? (Prepare a formal cash budget for the month of March.)

Thanks.