Exam 3 Problem 2 Wake Corporation has projected sales and production in units for the second quarter of the coming year as follows: \begin{tabular}{|l|r|r|r|} \hline & April & May & June \\ \hline Sales & 58,000 & 48,000 & 68,000 \\ \hline Production & 68,000 & 58,000 & 58,000 \\ \hline \end{tabular} Cash-related production costs are budgeted at $6 per unit produced. Of these production costs, 35% are paid in the month in which they are incurred and the balance in the following month. The accounts payable balance on March 31 totals $196,000, which will be paid in April. All units are sold on account for $12 each. Cash collections from sales are budgeted at 50% in the month of sale, 30% in the month following the month of sale, and the remaining 20% in the second month following the month of sale. Accounts receivable on April 1 totaled $553,000 (\$103,000 from February's sales and \$450,000 from March's sales). The balance from February will be collected in April and $270,000 of the balance from March will be collected in April and $180,000 of the balance will be collected in May. Required: a. Prepare a schedule for each month showing expected cash disbursements for Wake Corporation. b. Prepare a schedule for each month showing expected cash collections for Wake Corporation. Units of productio Cost per unit Production cost Expected Cash Disbursments