Following are the budgeted income statements for the second quarter of 2019 for SeaTech Inc April May June Sales $224,000 $272,000 $384,000 Cost of goods sold' 153,600 182,400 291,600 Gross profit $ 70,400 $ 89,600 31e2,400 Operating expenses 35,200 40,000 Operating income $ 35,200 $ 49,600 $ 59,200 43,200 Includes all product costs (le, direct materials, direct labor, and manufacturing overhead), includes all period costs (le, 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 $19,200 of the estimated monthly cost of goods sold and $12,800 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. 2019, consist of cash of $22.400 and accounts receivable of $239,680 ($167776 from March credit sales and $71.904 from February credit sales). Current liabilities as of April 1 consist of $28.800 of accounts payable for product costs Incurred in March: $7,360 of accrued liabilities for operating expenses incurred in March, and a $64.000, 11%, 120-day note payable that is due on April 17, 2019 An estimated income tax payment of $64,000 will be made in May. The regular quarterly dividend of $25,600 is expected to be declared in May and paid in June. Capital expenditures amounting to $27.520 will be made in April a. Complete the monthly cash budgets for the second quarter of 2019 using the following format. Note that the ending cash balance for June is provided as a check figure. (Use 360 days year for calculations.) June SEATECH INC. Cash Budget For the months of April, May, and June 2019 April May Beginning cash balance $ 22,400 Cash Receipts: From cash sales made in current month From credit sales made in February March April May 22,400 $ 0 $ 0 Total cash available $ Cash Disbursements: For cost of goods sold operating expenses incurred in March April May June For payment of note payable and interest capital expenditures For payment of income taxes For payment of dividends Total disbursements $ Ending cash balance $ 0 $ 22.400$ 0 $ 0 $ 0 36,053 b. Assume that management of SeaTech Inc 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 repayment (Do not round intermediate calculations. Use 360 days year for calculations.) SEATECH INC Cash Budget For the months of April, May, and June 2019 April May June 24 May June $ 0 $ Cash Budget For the months of April, May, and June 2019 April Beginning cash balance $ 22,400 Cash Receipts: From cash sales made in current month From credit sales made in: February March April May Total cash available $ 22,400 $ Cash Disbursements: For cost of goods sold/operating expenses incurred in March April May June For payment of note payable and interest For capital expenditures For payment of income taxes For payment of dividends Total disbursements $ 0 $ Excess (deficiency) of cash available over disbursements Borrowings Repayments Interest Ending cash balance $ 0 $ 0 $ 0 $ 0