Glenvale Furniture has projected sales of its product for the next six months as follows.

January	80 units
February	180 units
March	200 units
April	160 units
May	60 units
June	140 units

 

The product sells for $40 each. Credit sales account for 50% of sales; 60% are collected in the month of sales, and the remainder are collected in the following month.

All expenses and purchases are paid for in the same month they are incurred as follows:

Operating expenses are expected to be $1,500 each month.

Purchases are expected to be 20% of the expected sales each month.

Required:

a.       schedule of expected cash collections for the second quarter. (10 marks)

b.        cash Budget for the second quarter, assuming that Glenvale ended the first quarter with a cash balance of $3,000.