Question 2 For the second quarter of the following year Cloaks Company has projected sales and production in units as follows: Jan Feb Mar Sales 58,000 60,000 65,000 Production 62,000 57,000 58,000 Cash-related production costs are budgeted at $8 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the next month. $190,000 per month will account for Selling and administrative expenses. On January 31 the accounts payable balance totals $230,000, which will be paid in February. All units are sold on account for $12 each. Cash collections from sales are budgeted at 60% in the month of sale, 20% in the month following the month of sale, and the remaining 20% in the second month following the month of sale. On January 1 accounts receivable totaled $650,000 ($120,000 from Novembers sales and the remaining from December). Required: 1. Prepare a schedule for each month showing budgeted cash disbursements for Cloaks Company. (8 marks) 2. Prepare a schedule for each month showing budgeted cash receipts for Cloaks Company. (8 marks)