. Wickford's total sales for each month were first calculated in the sales budget and are reflected on the first line of the cash budget. * Wickford's sales are made on credit with terms of 2/10, net 30, Wickford's experience is that 20% is collected from customers who take advantage of the discount, 70% is collected in the second month, and the last 10% is collected in the third month after the sale. The budget assumes that there are no bad * The cost of materials averages 45% of Wickford's finished product. The purchases are generally made one month in advance of the sale, and Wickford pays its suppliers in 30 days. Accordingly, if July sales are forecasted at $1,320 million, then purchases during June would be $594 ($1,320 million x 0.45), and this amount would be paid in Juhy Other cash expenses indude wages and salaries at 20% of sales, monthly rent of $48 million, and other expenses at 5% of sales. Estimated tax payments of $70 million and $73 million are required to be paid on July 15 and October 15, respectively. In addition, a $1,200 million payment for a new plant must be made in September * .Assume that Wickford's targeted cash balance is $300, and the estimated cash on hand on July 1 is $280. Use the preceding information to fill in the missing amounts in the following cash budget Wickford Company Cash Budget For the Six Months Ended December 31, Year 1 ($ millions) July August September $1,236 567 October November December June $1,176 540 $1,260 583 $1,296 594 Credit sales $1,140 $1,200 $1,212 556 $1,320 Credit purchases July August September October November December Cash receipts Collections from this month's sales Collections from previous month's sales Collections from sales two months previously 238 840 118 $1,196 242 848 120 $1,210 247 865 121 $1,233 254 882 124 $1,260 259 907 126 $1,292 Total cash receipts Cash disbursements Payments for credit purchases Wages and salaries 540 240 48 60 70 545 242 48 61 556 | 247 583 259 48 65 594 264 48 48 Other expenses Payment for plant construction 1,200 $2,113 Total cash disbursements $958 $896 $955 $972