Please fill out the cash budget for the second quarter

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Problem 5-35 Sunland Products, a rapidly growing distributor of home gardening equipment, is formulating its plans for the coming year. CarolJones, the firm’s marketing director, has completed the following sales forecast. Month Sales Month SalesJanuary $909,000 July $1,506,100February $1,006,600 August $1,506,100March $909,000 September $1,609,500April $1,152,600 October $1,609,500May $1,257,100 November $1,506,100June $1,405,000 December $1,708,200 Phillip Smith, an accountant in the Planning and Budgeting Department, is responsible for preparing the cash flow projection. Hehas gathered the following information. o All sales are made on credit. 0 Sunland’s excellent record in accounts receivable collection is expected to continue, with 60% of billings collected in the monthafter sale and the remaining 40% collected two months after the sale. 0 Cost of goods sold, Sunland’s largest expense, is estimated to equal 40% of sales dollars. Seventy percent of inventory ispurchased one month prior to sale and 30% during the month of sale. For example, in April, 30% of April cost of goods sold ispurchased and 70% of May cost of goods sold is purchased. a All purchases are made on account. Historically, 75% of accounts payable have been paid during the month of purchase, andthe remaining 25% in the month following purchase. a Hourly wages and fringe benefits, estimated at 30% of the current month’s sales, are paid in the month incurred. o General and administrative expenses are projected to be $1,564,000 for the year. A breakdown of the expenses follows. Allexpenditures are paid monthly throughout the year, with the exception of property taxes, which are paid in four equalinstallments at the end of each quarter.