Question 1. A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $5,000 to start each quarter. Fill in the missing amounts. (Enter your answers in thousands of dollars. Cash deficiencies and Repayments should be indicated by a minus sign.)

	Quarter (000 omitted)
	1	2	3	4	Year
Cash balance, beginning	$ 6
Add collections from customers			96		323
Total cash available	71
Less disbursements:
Purchase of inventory	35	45		35
Selling and administrative expenses		30	30		113
Equipment purchases	8	8	10		36
Dividends	2	2	2	2
Total disbursements		85
Excess (deficiency) of cash available over disbursements	(2)		11
Financing:
Borrowings		15
Repayments (including interest) *				(17)
Total financing
Cash balance, ending
*Interest will total $1,000 for the year.

Question 2. Silver Company makes a product that is very popular as a Mothers Day gift. Thus, peak sales occur in May of each year, as shown in the companys sales budget for the second quarter given below:

	April	May	June	Total
Budgeted sales (all on account)	$300,000	$500,000	$200,000	$1,000,000

From past experience, the company has learned that 20% of a months sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $230,000, and March sales totaled $260,000.

Required:
1.	Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.

Schedule of Expected Cash Collections
	April	May	June	Total
February sales
March sales
April sales
May sales
June sales
Total cash collections
sheet is drawn here

2.	Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date.

May sales
June sales
Total accounts receivable at June 30