Oriole Instruments, a rapidly expanding electronic parts distributor, is formulating its plans for 2022. Mark Harris, the firm's director of marketing has completed his 2022 forecast and is confident that the company will meet or exceed sales estimates. The following sales figures show the growth that is expected and are the basis for planning in the other corporate departments: George Martin, assistant controller, is responsible for the cash flow projection, a critical element during a period of rapid expansion. She will use the following information in preparing her cash analysis: 1. Oriole has experienced an excellent record in accounts recelvable collection and expects this trend to continue. The company collects 50% of billings in the month after the sale and 50% in the second month after the sale. Uncollectible accounts are nominat and can belgnored in the analysis. 2. The purchase of electronic parts is Oriole's largest expenditure; the cost of these items is equal to 60% of sales. Oriole receives 40% of the parts one month before it sells them and 60% during the month of sale. 3. Historically, Oriole has cleared 60% of the accounts payable one month after it receives its purchases, and the remaining 40% two months after. 1. Oriole has experienced an excellent record in accounts receivable collection and expects this trend to continue. The company collects 50% of billings in the month after the 5 ale and 50% in the second month after the sale. Uncolfectible accounts are nominal and can be ignored in the analysis. 2. The purchase of electronic parts is Oriole's largest expenditure; the cost of these items is equal to 60% of sales. Oriole receives 40% of the parts one month before it sells them and 60% during the month of sale. 3. Historically, Oriole has cleared 60% of the accounts payable one month after it receives its purchases, and the remaining 40% two months after. 4. Hourly wages, including fringe benefits, depend on the sales volume; they are equal to 20% of the current month's sales. The company pays these wages in the month incurred. 5. General and administrative expenses are projected to be $3,135,000 for 2022 . The composition of these expenses is given below. The company incurs all of these expenses uniformly throughout the year, except for property taxes. It pays the property taxes in four equal instalments in the last month of cach quarter: Prepare a schedule of Cash Receipts and Disbursements for Oriole Instruments, by month, for the second quarter of 2022. Be sure that all receipts, disbursements, borrowing, and investing amounts are presented on a monthly basis. Ignore the interest expense and income from borrowing and investing. (Round answers to 0 decimal places, e.g. 125.) For the Second Quarter Ended June 30, From 1 month prior Total disbursements Financing Cash disbursements for general and administrative expenses Cash receipts Income tax Total cash receipts From 2 months prior Borrowing Disbursements Investment Cash disbursements for parts Property tax Ending cash balance Excess of cash available over cash disbursements Total financing Purchase of Land Beginning cash balance Total cash available Cash disbursements for wages
