Design Company is producing a single product. It expects its revenues and payments for the first part of the year to be:

Units - Sales - All Payments except for purchases

January 4,800 $24,000 $18,000

February 4,000 $20,000 $21,300

March 7,000 $35,000 $19,100

April 4,400 $22,000 $22,400

May 5,600 $28,000 $14,700

June 6,000 $30,000 $17,250

Delsing Company wants ending inventory to be equal to 20% of the following months budgeted sales. Finished goods inventories are expected to be 1,400 units on 1 March. 80% of the firms 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. Raw materials inventories are expected to be 486 kilograms on 1 March. The companys policy is that, in future, the inventory at the end of each month should equal 30% of the following months planned production requirements. Each product requires 0.25 kilogram of materials, which costs $4 per kilogram. All material purchases are paid in the month following purchase. Expenses include $4,000 monthly depreciation. The amount owing for purchases at 1 May is $5,928. The company had a cash balance of $2,000 on March 1. Required: (a) Finished goods inventory budget (in units) for each of the three months, March, April, and May. (b) Raw materials budget (in square meters) for the two months, March and April (c) Prepare a cash Budget for May and June