Hiks Hagen a retail store seeks your assistance in preparing a budget for the 2nd quarter of the year. The cash balance for March 30, 2021 was P 35,000. Accounts receivable for March was P 80,000 and all accounts were collected 50% for April and another 50% for May. Accounts payable was P 50,000, and all was paid on April. The budget is to be based on the following assumptions:

Sales: Each months sales are collected 50% in the month of sale with 2% discount, 30% on the following month and 18% on the second month following the sale. The 2% prove to be uncollectible.

Purchases: Hiks Hagen takes full advantage of the 2% discount allowed on the 50% of purchases paid on the 15th of the following month. Of the balance 50% are paid on the last day of the month after the discount date, and the balance on the 3rd month after the purchases.

Selling and General expenses for the month are 10% of the purchases for the month, of which

P3,000 is depreciation.

Actual and projected sales are as follows:

January

February

March

April

May

June

Sales

P 420.000

540.000

600.000

350.000

450,000

760.000

Purchases

P 250.000

340.000

400.000

100.000

209.000

430.000

Required: Prepare a cash budget for the second quarter of 2021.