Required: a. Complete the monthly cash budgets for the second quarter of 2019 using the following format. Note that the ending cash balance for June is provided as a check figure. (Use 360 days year for calculations.)

Following are the budgeted income statements for the second quarter of 2019 for SeaTech Inc.: Sales Cost of goods sold" Gross profit Operating expenses Operating income April $210,000 144,000 $ 66,000 33,000 $ 33,000 May $255,000 171,000 $ 84,000 37,500 $ 46,500 June $285,000 189,000 $ 96,000 40,500 $ 55,500 Includes all product costs (i.e., direct materials, direct labor, and manufacturing overhead). t Includes all period costs (i.e., selling, general, and administrative expenses). The company expects about 30% of sales to be cash transactions. Of sales on account, 60% are expected to be collected in the first month after the sale is made, and 40% are expected to be collected in the second month after sale. Depreciation, insurance, and property taxes represent $18,000 of the estimated monthly cost of goods sold and $12,000 of the estimated monthly operating expenses. The annual insurance premium is paid in January, and the annual property taxes are paid in August. Of the remainder of the cost of goods sold and operating expenses, 80% are expected to be paid in the month in which they are incurred, and the balance is expected to be paid in the following month. Current assets as of April 1, 2019, consist of cash of $21,000 and accounts receivable of $224,700 ($157,290 from March credit sales and $67,410 from February credit sales). Current liabilities as of April 1 consist of $27,000 of accounts payable for product costs incurred in March; $6,900 of accrued liabilities for operating expenses incurred in March; and a $60,000, 11%, 120-day note payable that is due on April 17, 2019. An estimated income tax payment of $60,000 will be made in May. The regular quarterly dividend of $24,000 is expected to be declared in May and paid in June. Capital expenditures amounting to $25,800 will be made in April. Required: a. Complete the monthly cash budgets for the second quarter of 2019 using the following format. Note that the ending cash balance for June is provided as a check figure. (Use 360 days year for calculations.) June SEATECH INC. Cash Budget For the months of April, May, and June 2019 April May Beginning cash balance $ 21,000 Cash Receipts: From cash sales made in current month From credit sales made in: February March April May Total cash available Cash Disbursements: For cost of goods sold/operating expenses incurred in: March April May June For payment of note payable and interest For capital expenditures For payment of income taxes For payment of dividends Total disbursements Ending cash balance $ 33,800