TO Industries prepares monthly cash budgets. The following budget information is available for April and May 2019:

	April	May
Sales	$650,000	$700,000
Direct material purchases	220,000	240,000
Direct labor	175,000	180,000
Manufacturing overhead	120,000	130,000
Selling and administrative expenses	150,000	150,000

All sales are credit sales. The company expects to collect 60% from customers in the month of the sale and the remaining 40% in first month following the sale. The company purchases direct materials on account. The company pays for 75% of the purchases in the month of the purchases and the remaining 25% in the first month following the purchase. Direct labor, manufacturing overhead, and selling and administrative expenses are paid in cash in the month incurred.

Additional information:

• March 2019 credit sales were $600,000
• March 2019 purchases of direct materials were $200,000
• The companys cash balance on April 1, 2019 is expected to be $90,000
• The company wants to maintain a minimum cash balance of $80,000 and has a line of credit in the amount of 1,000,000, with an annual interest rate of 6%, available to borrow if the budgeted cash balance falls below that level. Any amounts borrowed on the line of credit at the end of a month require a cash interest payment in the subsequent month. If the ending cash balance in a month exceeds the minimum balance, the excess amount is used to repay any amounts borrowed on the line of credit.

Required

1. Prepare a schedule of cash collections from credit sales for April and May 2019.
2. Prepare a schedule of cash disbursements for direct material purchases for April and May 2019.
3. Prepare a cash budget for April and May 2019 in columnar format.