Mey Salos Cost of goods sold Gross profi Operating expenses Operating income S210,000 256,000 $285,000 189,000 68,000 B400096,000 37 500 40,500 55,500 144,000 171,000 33,0003 S 33,000 48,500 Includes all product costs (i.e., direct materials, direct labor, and manufacturing cverhead) ndudes al period costs (ie, selling, general, and administrative expenses). The company expects about 30% o sales to be cas ansactions o sales o accounL 609 are expected o be collected in the month after the sale is made, and 40% are expected to be co e ted in the second month after sale. Depre ation, nsurance, and proper taxes represent $18,000 of the estimated monthly cost of goods soid and $12,000 of the estimated monthly operating expenses. The annual insurance premium is paid in January, and the annual property taxes are paid in August or the remainder of the cost of goods sold and operating expenses, 80% are expected to be paid in the month in which they are incurred, and the balance is expected to be paid in the following month Current assets as of April 1, 2016, consist of cash of $21,000 and accounts receivable of $224,700 (3157,290 from March credit sales and $87,410 from February credit sales). Current liabilities as of April 1 consist of $27,000 of accounts payable for product costs incurred in March; $6.900 cf a crued iabilities for operating expenses incurred in March; and a $60,000, 13%, 120-day note payable that is due on Apri 17, 2016 An estimated income tax payment of $80,000 wil be made in May. The regular quarterly dividend of $24,000 is expected to be declared in May and paid in June. Capital expenditures amounting to $25,800 will be made in April. a. Complebe the monthly cash budgets for the second quarter of 2016 using the following format. Nate that the ending cash balance for June is provided as a check figure. (Use 360 days year for calculations.) Cash Budget For the months of April, May, and June, 2016 June $21,000 Beginning cash balance Cash Receipts: From cash sales made in current month From crecit sales mace ih: March April May Totel cash aveilable For cost o g expense8 inoured in: March April May June r payment of note ntorost For capital expendinures For paymant of income taxee For payment of dividends Total disbursements Encing cash balance 533,400