fFollowing are the budgeted income statements for the second quarter of $2022$ for SeaTech Incorporated:

April May June

Sales $ $280,000$ $ $340,000$ $ $380,000$

Cost of goods sold$*$Footnote asterisk $192,000228,000252,000$

Gross profit $ $88,000$ $ $112,000$ $ $128,000$

Operating expenses$$Footnote dagger $44,00050,00054,000$

Operating income $ $44,000$ $ $62,000$ $ $74,000$

$*$Footnote asterisk Includes all product costs $($i$.$e$.,$ direct materials, direct labor, and manufacturing overhead$).$

$$Footnote dagger Includes all period costs $($i$.$e$.,$ selling, general, and administrative expenses$).$

The company expects about $30\%$ of sales to be cash transactions. Of sales on account, $60\%$ are expected to be collected in the first month after the sale is made, and $40\%$ are expected to be collected in the second month after sale. Depreciation, insurance, and property taxes represent $$24,000$ of the estimated monthly cost of goods sold and $$16,000$ of the estimated monthly operating expenses. The annual insurance premium is paid in January, and the annual property taxes are paid in August. Of the remainder of the cost of goods sold and operating expenses, $80\%$ are expected to be paid in the month in which they are incurred, and the balance is expected to be paid in the following month.

Current assets as of April $1,2022,$ consist of cash of $$28,000$ and accounts receivable of $$299,600($$$209,720$ from March credit sales and $$89,880$ from February credit sales$).$ Current liabilities as of April $1$ consist of $$36,000$ of accounts payable for product costs incurred in March; $$9,200$ of accrued liabilities for operating expenses incurred in March; and a $$80,000,14\%,120-$day note payable that is due on April $17,2022.$

An estimated income tax payment of $$80,000$ will be made in May. The regular quarterly dividend of $$32,000$ is expected to be declared in May and paid in June. Capital expenditures amounting to $$34,400$ will be made in April.

Required:

Complete the monthly cash budgets for the second quarter of $2022$ using the following format. Note that the ending cash balance for June is provided as a check figure.

Assume that management of SeaTech Incorporated desires to maintain a minimum cash balance of $$18,800$ at the beginning of each month and has arranged a $$100,000$ line of credit with a local bank at an interest rate of $10\%$ to ensure the availability of funds. Borrowing transactions are to occur only at the end of months in which the budgeted cash balance would otherwise fall short of the $$18,800$ minimum balance. Repayments of principal and interest are to occur at the end of the earliest month in which sufficient funds are expected to be available for repayme $\backslash$table$[[$SEATECH INCORPORATED$],[$Cash Budget$],[$For the months of April, May, and June $2022],[,$April,May,June$],[$Beginning cash balance,$$,28,000,,,,],[$Cash Receipts:$],[$From cash sales made in current month,,$84,000,,102,000,,114,000],[$From credit sales made in February,,$89,880,$$$,0,$$$,0],[$From credit sales made in March,,$125,832,,83,888,$$$,0],[$From credit sales made in April,$$,,,117,600,,78,400],[$From credit sales made in May,$$,0,$$$,0,,],[$Total cash available,$$,327,712,$$$,303,488,$$$,192,400],[$Cash Disbursements:$],[$For cost of goods sold$/$operating expenses incurred in March,$$,45,200,,0,,0],[$For cost of goods sold$/$operating expenses incurred in April,,$156,800,,39,200,,0],[$For cost of goods sold$/$operating expenses incurred in May,,$0,,190,400,,47,600],[$For cost of goods sold$/$operating expenses incurred in June,,$0,,0,,212,800],[$For payment of note payable and interest,,,,$0,,0],[$For capital expenditures,,$34,400,,0,,0],[$For payment of income taxes,,$0,,80,000,,0],[$For payment of dividends,,$0,,0,,32,000],[$Total disbursements,$$,236,400,$$$,309,600,$$$,292,400],[$Ending cash balance,$$,91,312,$$$,(6,112),$$$,44,267]]$nt$.$