For the second quarter of the following year Cloaks Company has projected sales and production in units as follows:

	Jan	Feb	Mar
Sales Units	63,000	39,000	45,000
Production	75,000	45,000	52,000

Cash-related production costs are budgeted at $11 per unit produced. Of these production costs, 30% are paid in the month in which they are incurred and the balance in the next month. $78,000 per month will account for Selling and administrative expenses. On January 31 the accounts payable balance totals $80,000, which will be paid in February.

All units are sold on account for $15 each. Cash collections from sales are budgeted at 65% in the month of sale, 15% in the month following the month of sale, and the remaining 20% in the second month following the month of sale. On January 1 accounts receivable totaled $400,000 ($30,000 from Novembers sales and the remaining from December).

Required:

A. Prepare a schedule for each month showing budgeted cash disbursements for Cloaks Company.

B. Prepare a schedule for each month showing budgeted cash receipts for Cloaks Company.