Question 2 (15 points) Medicine Hat Company has projected sales and production in units for the second quarter of the coming year as follows: April May June Sales 55,000 45,000 65,000 Production 65.000 55,000 55.000 Cash-related production costs are budgeted at $7 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 $110,000 per month. The accounts payable balance on March 31 totals $193,000, which will be paid in April. All units are sold on account for $16 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 totalled $520,000 ($100,000 from February's sales and the remainder from March) Required: a) Prepare a schedule for each month showing budgeted cash disbursements for Medicine Hat Company b) Prepare a schedule for each month showing budgeted cash receipts for Medicine Hat Company