Franklin Company has projected sales and production in units for the second quarter of the coming year as follows:

	April	May	June
Sales	55,000	45,000	65,000
Production	65,000	55,000	55,000

Cash-related production costs are budgeted at $5 per unit produced. Of these production costs, 50% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses are estimated to be $110,000 per month, and will be paid in the month in which they occur. The accounts payable balance on March 31 totals $200,000, which will be paid in April. All units are sold on account for $15 each. Cash collections from sales are budgeted at 70% in the month of sale, 20% in the month following the month of sale, and the remaining 10% in the second month following the month of sale. Accounts receivable on April 1 totalled $700,000 ($100,000 from February's sales and the remainder from March). Required: (YOU MUST SHOW ALL OF YOUR WORK FOR FULL MARKS) a) [6 Marks] Prepare a schedule for each month showing budgeted cash disbursements for Franklin Company. The schedule must be properly labelled for full marks.

b) [6 Marks] Prepare a schedule for each month showing budgeted cash receipts for Franklin Company. The schedule must be properly labelled for full marks.