Parameters:

• Beginning cash balance is $700,000
• Purchases of merchandise are paid 60% in the current month and 40% in the following month. Purchases totaled $1,800,000 in April and are estimated to be $2,000,000 in June 2021.
• Employee wages and salaries are paid for in the current month. Employee Expenses for May totaled $156,000.
• Overhead expenses are paid in the next month. The accounts payable amount for these expenses from April is $80,000 and for June will be $90,000. Mays overhead expenses total $80,000.
• Sales are on credit and are collected 70% in the current period and the remainder in the next period. Aprils sales were $3,000,000 and Junes sales are estimated to be $3,200,000. Bad debts average 1% of sales.
• Selling and administrative expenses are paid monthly and total $450,000, including $50,000 of depreciation.
• All unit costs for May are the same as they were in April.

Questions:

1. Sales budget
2. Purchase Budget
3. Cash Budget
4. Budgeted Income Statement.