the fourth quarter of 2017, Winston Wheels had the following net income: Sales $400,000 Less cost of sales 150.000 Gross margin 250,000 Selling and administration costs 110,000 Income before taxes 140,000 Income taxes 42.000 Net income $ 98.000 urchases in the fourth quarter of 2017 amounted to $170,000. Estimated data for 2 low: First Second Third Quarter Quarter Quarter Sales $300,000 $350,000 $400,000 Cost of sales 170,000 200,000 230,000 Purchases 200,000 230,000 250,000 Selling and admin. 110,000 110,000 110,000 Taxes are 30% of pretax income and are paid in the month of accrual. All sales are on credit and 30% are collected in the quarter of sale and 70% are in the next quarter. 40% of purchases are paid in the quarter of purchase and 60% in the next quart Selling and administrative expenses are paid in the quarter incurred. There is $11,000 of depreciation included in selling and administrative expense A capital expenditure for $40,000 is planned for the fourth quarter of 2018. epare a cash disbursements budget for the second quarter of 2018