Western Company has projected sales and production in units for the second quarter of the coming year as follows:
	April	May	June
Sales	55,000	45,000	65,000
Production	65,000	55,000	55,000
Cash-related production costs are budgeted at $10 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $110,000 per month, paid in the month incurred. The accounts payable balance on March 31 totals $200,000, which will be paid in April.
All units are sold on account (as credit sales) for $21 each. There are no cash sales. Cash collections from sales are budgeted at 50% in the month of sale, 40% in the month following the month of sale, and the remaining 10% in the second month following the month of sale. Accounts receivable on April 1 totaled $520,000 ($100,000 from February's sales and the remainder from March).
Required:	Clearly label whether your calculations are for part a. or part b.
a. Make a schedule for each month showing budgeted cash disbursements for the Western Company. (5 marks)
b. Make a schedule for each month showing budgeted cash receipts for the Western Company. (5 marks)