LO 83h PB8-2 Preparing Budgeted Income Statement Refer to the information in PB8-1. Required: Prepare Beach Wind's budgeted income statement for quarter 2. PB8-3 Preparing Cash Budget LO 8-4 Refer to the information in PB8-1. Beach Wind Company had $12,200 cash on hand on April 1. Of its sales, 60 percent is cash. Of the credit sales, 50 percent is collected during the month of the sale and 50 percent is collected during the month following the sale. Of direct materials purchases, 60 percent is paid for during the month purchased, and 40 percent is paid in the following month. Direct materials purchases for March totaled $800. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $280 in depreciation. Beach Wind plans to spend $15,000 on equipment during April. Required: Prepare the following for quarter 2: 1. Budgeted cash receipts. Include each month (April to June) as well as quarter 2 totals. 2. Budgeted cash payments. 3. Cash budget. Assume the company can borrow in increments of $1,000 to maintain a $10,000 minimum cash balance. No interest is charged if the loan is paid off by the end of the next quarter