Sillvar Company makes a product that is very popular as a Mothers Day gift. Thus, peak sales occur inMay of each year, as shown in the companys sales budget for the second quarter given below.April May June Quarter TotalBudgeted sales (all on account) $ 300,000 $ 500,000 $ 200,000 $ 1,000,000 From past experience, the company has learned that 20% of a months sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 10% are collected inthe second month following sale. Bad debts that are uncollectible from customers are negligible and can be ignored. February sales totalled $230,000, and March sales totalled $260,000. Requirements: (Hint: For each of the following requirements, copy the template found in the corresponding Exhibit provided into your team project document and complete it.)

1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.

2. Which month has the highest accrual sales that would appear on the income statement? Which month has the highest cash collections? Is it the same month? If so, why, if not, why not? Explain.

3. Assume the company will prepare a budgeted balance sheet as of June 30. Calculate the accounts receivable as of that date