The following estimates relate to April:

	$
Credit sales	320,000
Credit purchases	210,000
Wages expense	88 000
Administration expenses	36,000
Cost of sales	180,000
Depreciation expense	12,000
Cash payment for new machinery	20,000
Cash proceeds from the sale of old machinery	7,500
Rent expense	1,200

• All sales are on credit. Collections from debtors (accounts receivable) normally have the following pattern: 60 per cent in the month of sale, 30 per cent in the month following the sale, and 10 per cent in the second month following the sale.
• Sales in January, February and March were $295,000, $266,000 and $302,000 respectively.
• Credit purchases are paid for in the month following the purchase. Credit purchases in March were $182,000 and in February were $194,000.
• The company plans to repay a $30,000 loan in May.
• The cash balance at 1^st April was $4,000.
• Wages and Administration expenses are paid in the month in which the expense arises. Rent was paid in advance in March.

Required:

1. Prepare a Budgeted Income Statement for the month of April.

Budgeted Income Statement For the month of April

2. Prepare a schedule of estimated receipts from debtors (accounts receivable)

for the month of April.

		Month of cash collection
Month	Credit Sales	April