Quagmire Inc. has prepared the following sales budget for the quarter of April, May and June:

Sales Budget
	April	May	June	Total
Sales in units	9000	12500	10500	32000
Selling price per unit	x $50	x $50	x $50
Sales revenue	$450000	$625000	$525000	$1600000

All of the sales are on credit. Quagmire collects from customers as follows:

50% of sales in the month of sale 25% in the month following the sale, and 25% in the second month following the sale.

Cash receipts budget
	April	May	June	Total
Collect from current sales	225000	312500	262500	800000
Collect from last month	143750	112500	156250	412500
Collect from 2 mos. Prior	125000	143750	112500	381250
Cash receipts	$ 493750	$ 568750	$ 531250	$ 1593750

Quagmire expects cost of goods sold to be 40% of sales. They keep 10% of next months expected cost of goods sold in ending inventory. Below are budgeted purchases of inventory. All purchases are paid for in the SAME month as the purchase.

Purchases Budget
	April	May	June	Total
Budgeted cost of goods sold	180000	250000	210000	640000
plus desired ending inventory	25000	21000	16000	16000
Total needs	205000	271000	226000	656000
less beginning inventory	(18000)	(25000)	(21000)	(18000)
Cost of purchases	187000	246000	205000	638000

Below is the budget for variable and fixed selling and administrative expenses. Selling and admin expenses are paid in the month AFTER they are incurred. Fixed expenses include depreciation of 12000 each month.

Sales and Admin Budget
	April	May	June	Total
Variable S&A expenses	45000	62500	52500	160000
Fixed S&A (including depreciation)	120000	120000	120000	360000

Quagmire has $207000 of cash on hand at he beginning of May. Prepare a cash budget for May and June. (Use excel so that multiple attempts are easier.) Compute the beginning balance in cash for June. Hint: the answer is 376750. If you computed this correctly (it was your ending cash balance for May), you should be able to answer the next question too! Compute the ending balance in cash for June.