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

	April	May	June
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. The accounts payable balance on March 31 totals $190,000, which will be paid in April.

All units are sold on account for $14 each. 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 April 1 totaled $500,000 ($90,000 from February's sales and the remainder from March).

Hoskins company management requires a minimum cash balance of $125,000 which is also the cash balance at March 31. The company had a good first quarter and will pay dividends of $150,000 in April. They are also planning expansion and will purchase equipment for $100,000 in April and June and $50,000 in May. Other expenses will total $102,500, $70,500 and $101,500 in April. May and June respectively. Should the need arise the company holds an agreement with the bank for a 12% line of credit up to $300,000. (Assume any money is borrowed at the beginning of the month and repaid at the end of the month).

The Cash disbursements budget for production is as follows:

	April	May	June	Quarter Total
Current Month -40%	120,000	100,000	100,000	320,000
Following month -60%	190,000	180,000	150,000	520,000
Total cash Disb.	$310,000	$280,000	$250,000	$840,000

Required:

a) Prepare a schedule showing budgeted cash receipts for the quarter.

b) Prepare a Cash Budget with totals for each month and for the quarter.