Palmer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $147,560. The equipment will have an initial cost of $476,000 and have a 7 year life. If the salvage value of the equipment is estimated to be $21,000, what is the accounting rate of return?

Blue has forecast sales to be $430,000 in February, $560,000 in March, $600,000 in April, and $640,000 in May. The average cost of goods sold is 60% of sales. All sales are made on credit and sales are collected 50% in the month of sale, 30% the month following and the remainder two months after the sale. What are budgeted cash receipts in May?