Amber Furniture has projected sales of its product for the next six months as follows.

January	100 units
February	120 units
March	250 units
April	170 units
May	125 units
June	110 units

The product sells for $35 each. Credit sales account for 25% of sales; 50% are collected in the month, and the remainder is collected in the following month.

All expenses and purchases are paid for in the same month they are incurred as follows:

Operating expenses are expected to be $1,700 each month.

Purchases are expected to be 25% of the expected sales each month.

Required:

a. Prepare a schedule of expected cash collections for the second quarter. (10 marks)

b. Prepare a cash Budget for the second quarter, assuming that Amber ended the first quarter with a cash balance of $4,000. (15 marks)