Sandhill Products, a rapidly growing distributor of home gardening equipment, is formulating its plans for the coming year. K the firm's marketing director, has completed the following sales forecast. Anthony Walker, an accountant in the Planning and Budgeting Department, is responsible for preparing the cash flow projectio has gathered the following information. - All sales are made on credit. - Sandhill's excellent record in accounts recelvable collection is expected to continue, with 30% of billings collected in the mo of sale, 60% of billings collected in the month after sale and the remaining 10% collected two months after the sale. - Cost of goods sold, Sandhill's largest expense, is estimated to equal 45% of sales dollars. Forty percent of inventory is purcha one month prior to sale and 60% during the month of sale. For eample, in April, 60%5 of April cost of goods sold is purchased 40% of May cost of goods sold is purchased. - All purchases are made on account. Historically, 75% of accounts payable have been paid during the month of purchase, and remaining 25% in the month following purchase - Hourly wages and fringe benefits, estimated at 30% of the current month's sales, are paid in the month incurred. - General and administrative expenses are projected to be $1.509,000 for the year. A breakdown of the expenses follows. All expenditures are paid monthly throughout the year, with the exception of property tawes, which are paid in four equal instaliments at the end of each quarter. - Operating income for the first quarter of the coming year is projected to be $320,000.5 andhill is subject to a 40%5 tax rate. The company pays 100 s of its estimated taves in the month following the end of each quarter. - Sandhill maintains a minimum cash balance of $50,000. If the cash balance is less than $50.000 at the end of the month, the compamy borrows against its 124 line of credit in order to maintain the balance. All borrowings are made at the beginning of the month, and all repayments are made at the end of the month (in increments of $1.000 ). Accrued interest is paid in full with each principal repayment. The projected cash balance on April 1 is $50,000. (a) Your answer is correct. Prepare the cash receipts budget for the second quarter. iEnter answers in necessary fields only, Leave other fields blank. Donot enter 0.) Accounts Receivable balance at the end of second quarter eTextbook and Media Assistance Used Attempts: unlimited b) Prepare the purchases budget for the second quarter. (Round answers to 0 decimal ploces, es. 5,275. Enter answers in necessary fields only. Leave other fields blank. Do not enter 0 .)