G&R Manufacturing Limited has projected sales and production in units for the second quarter of the coming year as follows:

	October	November	December
Sales	50,000	40,000	60,000
Production	60,000	50,000	50,000

Cash-related production costs are budgeted at $5 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $100,000 per month, paid in the month incurred. The accounts payable balance on September 30 totals $190,000, which will be paid in October.

All units are sold on account (as credit sales) for $14 each. There are no cash sales. Cash collections from sales are budgeted at 60% in the month of sale, 30% in the month following the month of sale, and the remaining 10% in the second month following the month of sale. Accounts receivable on October 1 totalled $500,000 ($90,000 from August's sales and the remainder from September).

a. Prepare a schedule for each month showing budgeted cash disbursements for the G&R Manufacturing Limited. (5 marks)

b. Prepare a schedule for each month showing budgeted cash receipts for the G&R Manufacturing Limited. (5 marks)