Concord Products, a rapidly growing distributor of home gardening equipment, is formulating its plans for the coming year Carol Jones, the firms marketing director, has completed the following sales forecast Month Sales Month Sales January $900,500 July $1,503,000 February $1,006,300 August $1,503,000 March $900,500 September $1,607,400 April $1,152,600 October $1,607,400 May $1,254,200 November $1,503,000 June $1,408,000 December $1,704,800 Phillip Smith, an accountant in the Planning and Budgeting Department, is responsible for preparing the cash flow projection He has gathered the following information All sales are made on credit Concords excellent record in accounts receivable collection is expected to continue, with 60 of billings collected in the month after sale and the remaining 40 collected two months after the sale Cost of goods sold, Concords largest expense, is estimated to equal 40 of sales dollars Seventy percent of inventory is purchased one month prior to sale and 30 during the month of sale For example, in April, 30 of April cost of goods sold is purchased and 70 of May cost of goods sold is purchased All purchases are made on account Historically, 75 of accounts payable have been paid during the month of purchase, and the remaining 25 in the month following purchase Hourly wages and fringe benefits, estimated at 30 of the current months sales, are paid in the month incurred General and administrative expenses are projected to be $1,562,600 for the year A breakdown of the expenses follows All expenditures are paid monthly throughout the year, with the exception of property taxes, which are paid in four equal installments at the end of each quarter Salaries and fringe benefits $ 321,400 Advertising 379,900 Property taxes 141,600 Insurance 193,100 Utilities 179,100 Depreciation 347,500 Total $ 1,562,600 Operating income for the first quarter of the coming year is projected to be $320,500 Concord is subject to a 40 tax rate The company pays 100 of its estimated taxes in the month following the end of each quarter Concord maintains a minimum cash balance of $50,000 If the cash balance is less than $50,000 at the end of the month, the company borrows against its 12 line of credit in order to maintain the balance All borrowings are made at the beginning of the month, and all repayments are made at the end of the month (in increments of $1,000) Accrued interest is paid in full with each principal repayment The projected cash balance on April 1 is $57,700 Prepare the cash budget for the second quarter (Round answers to 0 decimal places, e g 5,275 Enter answers in necessary fields only Leave other fields blank Do not enter 0 )

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Concord Products, a rapidly growing distributor of home gardening equipment, is formulating its plans for the coming year. Carol Jones, the firms marketing director, has

Concord Products, a rapidly growing distributor of home gardening equipment, is formulating its plans for the coming year. Carol Jones, the firms marketing director, has completed the following sales forecast.

Month	Sales	Month	Sales
January	$900,500	July	$1,503,000
February	$1,006,300	August	$1,503,000
March	$900,500	September	$1,607,400
April	$1,152,600	October	$1,607,400
May	$1,254,200	November	$1,503,000
June	$1,408,000	December	$1,704,800

Phillip Smith, an accountant in the Planning and Budgeting Department, is responsible for preparing the cash flow projection. He has gathered the following information.

	All sales are made on credit.
	Concords excellent record in accounts receivable collection is expected to continue, with 60% of billings collected in the month after sale and the remaining 40% collected two months after the sale.
	Cost of goods sold, Concords largest expense, is estimated to equal 40% of sales dollars. Seventy percent of inventory is purchased one month prior to sale and 30% during the month of sale. For example, in April, 30% of April cost of goods sold is purchased and 70% of May cost of goods sold is purchased.
	All purchases are made on account. Historically, 75% of accounts payable have been paid during the month of purchase, and the remaining 25% in the month following purchase.
	Hourly wages and fringe benefits, estimated at 30% of the current months sales, are paid in the month incurred.
	General and administrative expenses are projected to be $1,562,600 for the year. A breakdown of the expenses follows. All expenditures are paid monthly throughout the year, with the exception of property taxes, which are paid in four equal installments at the end of each quarter.

Salaries and fringe benefits	$	321,400
Advertising		379,900
Property taxes		141,600
Insurance		193,100
Utilities		179,100
Depreciation		347,500
Total	$	1,562,600

Operating income for the first quarter of the coming year is projected to be $320,500. Concord is subject to a 40% tax rate. The company pays 100% of its estimated taxes in the month following the end of each quarter.

Concord maintains a minimum cash balance of $50,000. If the cash balance is less than $50,000 at the end of the month, the company borrows against its 12% line of credit in order to maintain the balance. All borrowings are made at the beginning of the month, and all repayments are made at the end of the month (in increments of $1,000). Accrued interest is paid in full with each principal repayment. The projected cash balance on April 1 is $57,700.

Prepare the cash budget for the second quarter. (Round answers to 0 decimal places, e.g. 5,275. Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.)