Following 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.