Crane Products, a rapidly growing distributor of home gardening equipment, is formulating its plans for the coming year. Mark Harris,

the firm's marketing director, has completed the following sales forecast.

Paul White, 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.

Crane's excellent record in accounts receivable collection is expected to continue, with $30\%$ of billings collected in the month of

sale, $60\%$ of billings collected in the month after sale and the remaining $10\%$ collected two months after the sale.

Cost of goods sold, Crane's largest expense, is estimated to equal $45\%$ of sales dollars. Forty percent of inventory is purchased

one month prior to sale and $60\%$ during the month of sale. For example, in April, $60\%$ of April cost of goods sold is purchased and

$40\%$ 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 month's sales, are paid in the month incurred.

General and administrative expenses are projected to be $$1,515,000$ 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.

Your answer is incorrect.

Prepare the cash payments 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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