Delsing Company expects its revenues and payments for the first part of the year to be:

UnitsSalesPayments

$$

January4,800$24,000$18,000

February4,00020,00021,300

March7,00035,00019,100

April4,40022,00022,400

May5,60028,00014,700

Delsing Company wants ending inventory to be equal to 20% of the following month's budgeted sales.80% of the firm's sales are on credit. Past experience shows that 40% of accounts receivable are collected in the month of sale, and the remainder is collected in the month following sale. Delsing pays its payments in the following month.

Company had a cash balance of $2,000 on March 1, which is also its minimum required cash balance. There is an outstanding loan of $10,000 on March 1. At the end of each month, the company makes a payment to repay the loan if excess cash is available. The 12% per annum interest calculated on the beginning balance is paid monthly.

Required:

(a) production budget for March and April

(b)schedule of cash receipts for March and April.

(c)cash Budget for March and April