Sunland Products, a rapidly growing distributor of home gardening equipment, is formulating its plans for the coming year. Carol Jones, the firm's marketing director, has completed the followin sales forecast Month January February March April Sales $909,000 $1,006,600 $909,000 $1,152,600 $1,257,100 $1,405,000 Month July August September October November December Sales $1,506,100 $1,506,100 $1,609,500 $1,609,500 $1,506,100 $1,708,200 WY June Phillip Smith, an accountant in the Planning and Budgeting Department is responsible for preparing the cash now projection. He has gathered the following information N sales are made on credt . Surland's excellent record in accounts receivable collection is expected to continue, with 60 of billings collected in the month after sale and the remaining 40% collected two months after the Cost of goods sold, Sunland's largest expense, is estimated to equal 40% of sales dollars. Seventy percent of inventory is purchased one month prior to sale and 30% during the month of sale For example, in April 30% of April cost of goods sold is purchased and 70% 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 $1,564,000 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 Advertising Property taxes Insurance 320,900 379,100 137,600 192,809 Depreciation 349,600 $ 1,564.000 Operating income for the first quarter of the coming year is projected to be $327,400. 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. - Sunand maintains a minimum cash balance of $50,000. If the cash balance is less than $50,000 at the end of the month, the company borrows against 12 line of credit in order to maintain the balance. A borowings are made at the beginning of the month, and repayments are made at the end of the month in increments of $1,000). Accredinterest is paid in c h each principal repayment. The projected cash balance on April 1 is $50,000 Prepare the cash payments budget for the second quarter. (Round answers to o 0.) Cash Payments Budget April May June March purchases April purchases May purchases June purchases Accounts Payable balance at the end of second quarter of 2015 $ LINK TO TEXT April May June Quarter eginning Cash balance 58600 Collection from Sales Total cash available to spend Less: - disbursements Wages Salaries Advertising Property taxes Insurance Utilities Income taxes Payments for inventory Total cash disbursements Cash excess (deficiency) Minimum cash balance Cash excess (needed) Financing: Interest Repayments Borrowings Total financing