The Prince Albert Corporation has forecast the following sales for the first seven months of the year.

January		$13,000	May		$13,000
February		15,000	June		19,000
March		17,000	July		21,000
April		23,000

Monthly material purchases are set equal to 30 percent of forecasted sales for the next month. Of the total material costs, 40 percent are paid in the month of purchase and 60 percent are paid in the following month. Labour costs will run $4,300 per month, and fixed overhead is $3,500 per month. Interest payments on the debt will be $3,300 for both March and June. Finally, the Prince Albert sales people will receive a 2.0 percent commission on total sales for the first six months of the year, to be paid on June 30.

Prepare a monthly summary of cash payments for the six months from January through June. (Note: Compute prior December purchases to help get total material payments for January.)

January February March April $13,000 15,000 17,000 23,000 May June July $13,000 19,000 21,000 Monthly material purchases are set equal to 30 percent of forecasted sales for the next month. Of the total material costs, 40 percent are paid in the month of purchase and 60 percent are paid in the following month. Labour costs will run $4,300 per month, and fixed overhead is $3,500 per month. Interest payments on the debt will be $3,300 for both March and June. Finally, the Prince Albert sales people will receive a 2.0 percent commission on total sales for the first six months of the year, to be paid on June 30. Prepare a monthly summary of cash payments for the six months from January through June. (Note: Compute prior December purchases to help get total material payments for January.) Prince Albert Corporation Cash Payments Schedule February March s s $ December Januas April s May June July S s s 3900 Sales Purchases Current month payment Prior month payment 13000 4500 1800 Total payment for materials Labour costs Fixed overhead Interest payments Sales commission Total cash payments s s s S S s