Larda is a small retailer that sells phone cases. The following estimates are available for the coming period:

Month Budgeted Sales (Units)

April 20,000

May 25,000

June 22,000

Notes:

i.Opening cash balance for the month of May is expected to be $4,625.

ii.Inventory policy- ending inventory of finished goods equal to 25% of that month's sales.

iii.Budgeted selling price per case- $20 (Purchase price per case - $10 (purchase volume greater than 10,000 cases per month will receive a 5% discount).

iv.Collections from customers:

75% in the month of sale

25% one month after the sale

v.Monthly operating expenses are budgeted at:

Marketing $10,000 per month

Sales commission (5% of Total Sales Collection for the month)

Administration cost per month is $18,000. This includes depreciation of $2,000 per month.

vi.All expenses and purchases are paid in the month incurred unless otherwise specified.

1. Purchases budget in units for May is:
2. Purchases budget for May in dollars is:
3. Total Sales Collection for May is $:
4. Budgeted Closing Cash Balance for the month of May should be $: