Please provide more details for cash disbursement for merchandise?

REVIEW PROBLEM: COMPLETING A MASTER BUDGET 51 The following data are for preparation of a second-quarter master budget for Rocket Company, a merchandising operation that prepares its master hudget on a quarterly basis. a. At the end of the previous quarter (March 31), the organization's balance sheet showed the following account balances: Cash S 9,000 Accounts receivable 48.000 Inventory 12.600 214,100 Buildings and equipment (net) Accounts payable Common shares S 18.300 190.000 Retained carnings 75.400 S283,700 $283.700 b. Actual sales for March and budgeted sales for April through July are as follows: S60.XX March (actual) April $70,0XXO May 585,0XX) June 90.00 S50.00 c. Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following the sale. The accounts receivable at March 31 are a result of March credit sales. d. The company's gross margin is 40% of sales. (In other words, the cost of goods sold is 60% of sales.) c. Monthly expenses are budgeted as follows: salaries and wages, S7,500 per month; shipping, 6% of sales, advertising, $6,000 per month; other expenses, 4% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $6.000 for the quarter. REVIEW PROBLEM: COMPLETING A MASTER BUDGET 51 The following data are for preparation of a second-quarter master budget for Rocket Company, a merchandising operation that prepares its master hudget on a quarterly basis. a. At the end of the previous quarter (March 31), the organization's balance sheet showed the following account balances: Cash S 9,000 Accounts receivable 48.000 Inventory 12.600 214,100 Buildings and equipment (net) Accounts payable Common shares S 18.300 190.000 Retained carnings 75.400 S283,700 $283.700 b. Actual sales for March and budgeted sales for April through July are as follows: S60.XX March (actual) April $70,0XXO May 585,0XX) June 90.00 S50.00 c. Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following the sale. The accounts receivable at March 31 are a result of March credit sales. d. The company's gross margin is 40% of sales. (In other words, the cost of goods sold is 60% of sales.) c. Monthly expenses are budgeted as follows: salaries and wages, S7,500 per month; shipping, 6% of sales, advertising, $6,000 per month; other expenses, 4% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $6.000 for the quarter