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Mast Corporation seeks your assistance in developing cash andother budget information for May, June, and July. At April 30, thecompany had cash of $11,000, accounts receivable of $869,000,inventories of $109,000, and accounts payable of $26,647. Thebudget is to be based on the following assumptions.

• Each month’s sales are billed on the last day of themonth.
• Customers are allowed a 2 percent discount if payment is madewithin 10 days after the billing date. Receivables are recorded inthe accounts at their gross amounts (not net of discounts).
• The billings are collected as follows: 70 percent within thediscount period, 15 percent by the end of the month, and 12 percentby the end of the following month. Three percent isuncollectible.

Purchase data are as follows.

• Of all purchases of merchandise and selling, general, andadministrative expenses, 63 percent is paid in the month purchasedand the remainder in the following month.
• The number of units in each month’s ending inventory equals 125percent of the next month’s units of sales.
• The cost of each unit of inventory is $8.
• Selling, general, and administrative expenses, of which $5,000is depreciation, equal 15 percent of the current month’ssales.
• Actual and projected sales follow:

	Dollars		Units
March	$	140,400	10,800
April		157,300	12,100
May		141,700	10,900
June		148,200	11,400
July		130,000	10,000
August		12,600	10,200

Required:

a. Compute the budgeted purchases in dollarsfor May.

budgeted purchases

  
b. Compute the budgeted purchases in dollars forJune.

budgeted purchases

  

c. Compute the budgeted cash collections duringMay. (Do not round intermediate calculations.)

budgeted cash collections

d. Compute the budgeted cash disbursementsduring June. (Do not round intermediatecalculations.)

budgeted cash disbursements

e. Compute the budgeted number of units ofinventory to be purchased during July.

budgeted number of units