Peng Company plans to sell 12,000 units during the month of August. If the company has 2,500 units on hand at the start of the month, and plans to have 2,000 units on hand at the end of the month, how many units must be produced during the month?

Darville Company produces and sells Product AlphaB. To guard against stockouts, the company requires that 20% of the next month's sales be on hand at the end of each month. Budgeted sales of Product AlphaB over the next four months are:

	June	July	August	September
Budgeted Sales in Units	30,000	40,000	60,000	50,000

What would be the budgeted Production for August?

Information on the actual sales and Inventory purchases of the Lu Company for the first quarter follow:

	Inventory
	Sales	Purchases
January	$120,000	$60,000
February	$100,000	$78,000
March	$130,000	$90,000

All inventory is paid in full in the month following the purchase, net of the discount.

Collections from Lu Company's customers are normally 60% in the month of sale, 30% in the month following sale, and 8% in the second month following sale. The balance is uncollectible. Lu Company takes full advantage of the 3% discount allowed on purchases paid for by the end of the following month.

The company expects sales in April of $150,000 and inventory purchases of $100,000. Operating expenses for the month of April are expected to be $38,000, of which $15,000 is salaries and $8,000 is depreciation. The remaining operating expenses are variable with respect to the amount of sales in dollars. Those operating expenses requiring a cash outlay are paid for during the month incurred. Lu Company's cash balance on March 1 was $43,000, and on April 1 was $35,000.

Required:

What would be the expected Cash Collections from customers during April? (7marks)

What would be the expected Cash Disbursements during April for Inventory purchases? (7marks)

What would be the expected Cash Disbursements during April for Operating Expenses? (7marks)

What would be the expected Cash Balance on April 30? (4marks)