Pet Treats, Inc. specializes in gourmet pet treats and receives all income from sales

Sales estimates (in millions)

• • Q1 = 500; Q2 = 600; Q3 = 650; Q4 = 800; Q1 next year = 550
  • Accounts receivable
  • Beginning receivables = $250
  • Average collection period = 30 days
  • Accounts payable
  • Purchases = 50% of next quarters sales
  • Beginning payables = 125
  • Accounts payable period is 45 days
  • Other expenses
  • Wages, taxes, and other expense are 30% of sales
  • Interest and dividend payments are $50
  • A major capital expenditure of $200 is expected in the second quarter
  • The initial cash balance is $80, and the company maintains a minimum balance of $50

a. Prepare Cash Collection schedule for Q1 - Q4

b. Prepare Cash Disbursement schedule for Q1 - Q4