Edwards Company has projected sales

Edwards Company has projected sales and production in units for the second quarter of the year as follows: Sales April 30,000 May 20,000 June 25,000

Production April 25,000 May 25,000 June 30,000

Assume that all units will be sold on account for $15 each.

Cash collections from sales are budgeted at 70% in the month of sale 20% in the month following the month of sale the remaining 10% in the second month following the month of sale

Accounts receivable on March 31 totaled $255,000 ($45,000 from February's sales and the remainder from March.)

Production (inventory) costs of $10 per unit are paid in the month after they are incurred. Edwards produced 27,000 units in March. Selling and administrative expenses (excluding depreciation) are budgeted to be 15% of each month's sales.

Prepare a schedule for budgeted cash receipts in April, May, and June for Edwards Company.

Calculate the accounts receivable balance as of June 30.

Prepare a schedule of cash disbursements in April, May, and June for Edwards Company. e Edwards Company wants to purchase equipment costing $50,000 some time in the second quarter. When should it make the purchase, assuming that it must pay immediately upon purchase?