Moorcroft Companys budgeted sales and direct materials purchases are as follows:

		Budgeted Sales		Budgeted D.M. Purchases
April		$ 322,000		$ 50,000
May		289,000		52,000
June		365,000		66,000

Moorcrofts sales are 40% cash and 60% credit. Credit sales are collected 20% in the month of sale, 50% in the month following sale, and 26% in the second month following sale; 4% are uncollectible. Moorcrofts purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month following the purchase and 60% in the second month following the purchase.

(a)