Return to question Sales Cost of goods sold* Gross profit Operating expensest Operating income $266,000 182,400 $323,000 $361,000 216,600 239,400 $ 83,600 41,800 $ 41,800 $106,400 47,500 $121,600 51,300 $ 58,900 $ 70,300 Includes all product costs (i.e., direct materials, direct labor, and manufacturing overhead). 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 $22,800 of the estimated monthly cost of goods sold and $15,200 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 $26,600 and accounts receivable of $284,620 ($199,234 from March credit sales and $85,386 from February credit sales). Current liabilities as of April 1 consist of $34,200 of accounts payable for product costs incurred in March; $8,740 of accrued liabilities for operating expenses incurred in March; and a $76,000, 11%, 120-day note payable that is due on April 17, 2019. An estimated income tax payment of $76,000 will be made in May. The regular quarterly dividend of $30,400 is expected to be declared in May and paid in June. Capital expenditures amounting to $32,680 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.)