\fThe company is in the process of preparing budget data for May. A number of budget items have already been prepared, as follows: a. Sales are budgeted at $400,000 for May. Of these sales, $120,000 will be for cash; the remainder will be credit sales. Onehalf of a month's credit sales are collected in the month the sales are made, and the remainder are collected in the following month. All of the April 30 receivables will be collected in May. b. Purchases of inventory are expected to total $240,000 during May. These purchases will all be on account 40% of all purchases are paid for in the month of purchase; the remainder are paid in the following month. All of the April 30 accounts payable to suppliers will be paid during May. c. The May 31 inventory balance is budgeted at $80,000. d. Operating expenses for May are budgeted at $144,000, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $4,000 for the month. e. The note payable on the April 30 balance sheet will be paid during May, with $140 in interest [All of the interest relates to May.) 1'. New refrigerating equipment costing $8,500 will be purchased for cash during May. g. During May, the company will borrow $40,000 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year. Required: 1. Prepare a cash budget for May. (Any "Repayments" and "Interest" should be indicated by a minus sign.) \f\fDaisy Products Limited of Shenzhen, China, manufactures and distributes toys throughout Southeast Asia. Three cubic centimetres {cc} of solvent 080 are required to manufacture each unit of Fineclay, one of the company's products. The company is now planning raw materials needs for the third quarter, the quarter in which peak sales of Fineclay occur. To keep production and sales moving smoothly, the company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equai to 2850 units of Fineclay plus 20% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 9,500 units. b. The raw materials inventory on hand at the end of each month must be equal to onehalf of the following months production needs for raw materials. The raw materials inventory on June 30 is budgeted to be 51,300 cc of solvent {1-80. c. The company maintains no workinprocess inventories- A sales budget for Fineclay for the last six months of the year follows: I Budgeted Sales in Units. July 33, 259 August 38, 698 September 4]", 509 October 28,500 November 19, 609 December 9, 569 \fZ This part of the question is not part of your Connect assignment. 3. Prepare a budget showing the quantity of solvent 080 to be purchased for July, August, and September, and for the quarter in total