Splish has experienced an excellent record in accounts receivable collection and expects this trend to continue. The company

collects $50\%$ of billings in the month after the sale and $50\%$ in the second month after the sale. Uncollectible accounts are

nominal and can be ignored in the analysis.

The purchase of electronic parts is Splish's largest expenditure; the cost of these items is equal to $60\%$ of sales. Splish receives

$40\%$ of the parts one month before it sells them and $60\%$ during the month of sale.

Historically, Splish has cleared $60\%$ of the accounts payable one month after it receives its purchases, and the remaining $40\%$

two months after.Splish makes income tax payments in the first month of each quarter based on income for the prior quarter. The tax rate is

$30\%.$ The net income for the first quarter of $2022$ is projected to be $$885,000.$

Splish has a corporate policy of maintaining an end$-$of$-$month cash balance of $$236,000.$ It invests or borrows cash

necessary, to maintain this balance.

Splish uses a calendar$-$year reporting period.Prepare a schedule of Cash Receipts and Disbursements for Splish Instruments, by month, for the second quarter of $2022.$ Be sure that

all receipts, disbursements, borrowing, and investing amounts are presented on a monthly basis. Ignore the interest expense and

income from borrowing and investing. $($Round answers to $0$ decimal places, e$.$g$.125.)$

SPLISH INSTRUMENTS

Cash Budget

For the Second Quarter Ended June $30,2022$

April

MaySplish has experienced an excellent record in accounts receivable collection and expects this trend to continue. The company

collects $50\%$ of billings in the month after the sale and $50\%$ in the second month after the sale. Uncollectible accounts are

nominal and can be ignored in the analysis.

The purchase of electronic parts is Splish's largest expenditure; the cost of these items is equal to $60\%$ of sales. Splish receives

$40\%$ of the parts one month before it sells them and $60\%$ during the month of sale.

Historically, Splish has cleared $60\%$ of the accounts payable one month after it receives its purchases, and the remaining $40\%$

two months after.

prepare balance sheets with figures.