Sunland Products, a rapidly growing distributor of home gardening equipment, is formulating its plans for the coming year. Joseph Moore, the firm's marketing director, has completed the following sales forecast. Month Sales Month Sales January $920,000 July $1,170,000 February $1,020,000 August $1,500,000 March $920,000 September $1,600,000 April $1,120,000 October $1,600,000 May $870,000 November $1,500,000 June $970,000 December $1,700,000 Charles Wilson, an accountant in the Planning and Budgeting Department, is responsible for preparing the cash flow projection. He has gathered the following information. All sales are made on credit. Sunland's excellent record in accounts receivable collection is expected to continue, with 30% of billings collected in the month 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, Sunland's largest expense, is estimated to equal 45% of sales dollars. Forty percent of inventory is purchased one month prior to sale and 60% during the month of sale. For example, in April, 60% of April cost of goods sold is purchased and 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 the 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 $1,473,000 for the year. A breakdown of the expenses follows. All expenditures are paid monthly throughout the year, with the exception of property taxes, which are paid in four equal installments at the end of each quarter. Salaries and fringe benefits 318,000 Advertising 381,000 Property taxes Insurance Utilities Depreciation Total $ 1,473,000 80,000 192,000 156,000 346,000 Operating income for the first quarter of the coming year is projected to be $320,000. Sunland is subject to a 40% tax rate. The company pays 100% of its estimated taxes in the month following the end of each quarter. Prepare the castreceipts budget for the second quarter. (enter answers in necessary fields only. Leave other plus dink. Do not enter 0.) April 102000 Cash Receipts Budget May June Total Cash Receipts 552000 92000 102000 644000 336000 672000 112000 1120000 261000 522000 783000 291000 291000 990000 1025000 925000 2940000 Accounts Receivable balance at the end of second quarter 766000 repare the purchases budget for the second quarter. (Round answers to O decimal places, eg. 5,275. Enter answers in necessary fields nly. Leave other fields blank. Do not enter O.) SA April 302400 Purchases Budget May June Total Purchases 302400 156600 234900 391500 174600 261900 436500 210600 210600 459000 409500 472500 1341000 Prepare the cash payments budget for the second quarter. (Round answers to O decimal places, e.g. 5,275. Enter answers in necessary fields only. Leave other fields blank. Do not enter O.) April 112,500 344,250 Cash Payments Budget May 114,750 June Total Cash Payments 112,500 459,000 307,125 102,375 409.500 354,375 354,375 456,750 421,875 456,750 1,335,375 Accounts Payable balance at the end of second quarter 118,125 Prepare the cash budget for the second quarter. (Round answers to O decimal places, eg. 5,275. Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.) Cash Budget May April 94F Mostly sunny April May June Quarter