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plz answer asap Tony Stark and Company has projected sales and production in units for the second quarter of the coming year as follows: Sales
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Tony Stark and Company has projected sales and production in units for the second quarter of the coming year as follows: Sales Production April 50,000 60,000 May 40,000 50,000 lune 60,000 50,000 Cash-related production costs are budgeted at $6 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $140,000 per month. The accounts payable balance on March 31 totals $240,000, which will be paid in April All units are sold on account for $15 each. Cash collections from sales are budgeted at 60% in the month of sale, 30% in the month following the month of sale, and the remaining 10% in the second month following the month of sale. Accounts receivable on April 1 totaled $800,000 ($100,000 from February's sales and the remainder from March) Submission Instructions a. Prepare a schedule for each month showing budgeted cash disbursements for Clay Company b. Prepare a schedule for each month showing budgeted cash receipts for Clay CompanyStep by Step Solution
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