Direct Equipment
Projected Revenues & Expenses
	June	July	August	September	October
Sales	85,000	86,275	87,569	88,883	90,216
Cost of Goods Sold	52,700	53,491	54,293	55,107	55,934
Gross Profit	32,300	32,785	33,276	33,775	34,282
Admin & Selling Costs	21,000	21,000	21,000	21,000	21,000
Net Income before Taxes	11,300	11,785	12,276	12,775	13,282
Information related to cash receipts
1) Cash sales are 80% and credit sales are 20% per month
2) Collections on credit sales are 60% in the month of sale and 40% in the following month
Information related to purchases of direct materials
1) Purchases of Direct Materials are 32% of Sales
2) Direct material purchases are paid 50% in current month and 50% in following month
3) Ending Inventory needs to be 30% of the following month's Direct Materials Cost of Goods Sold
4) Accounts payable for purchases of direct materials June 30 was $13,600
Information related to cash
1) Beginning Cash Balance June 30 was $175,000
2) Admin & Selling Costs include $1,000 depreciation expense
3) Admin & Sales salaries are $4,350 per month (included in total Admin and Selling Costs)
4) Direct wages are 30% of sales
5) Wages are paid 80% in current month and 20% the following month
6) A dividend to the owners of 10% of the ending quarter's Net Income (after tax) is paid in Jan, Apr, Jul, Oct
7) April - June Net Income before taxes was $50,000
8) Quarterly estimated taxes are paid the month following the end of the quarter
9) Effective tax rate is 23%.
10) Direct Equipment operates on a calendar year basis

Required: Please Prepare the budgets for July through October

2) Production (direct material)