Cymbal E$-$Motors is a fast$-$growing start$-$up firm that manufactures electric motors for bicycles. The following income statement is available for April:

Sales revenue $(840$ units @ $$1,600$ per unit$)$$ $1,344,000$Less$$Manufacturing costs$$Variable costs$62,400$Depreciation $($fixed$)58,000$Marketing and administrative costs$$Fixed costs $($cash$)126,500$Depreciation $($fixed$)66,000$Total costs$ $312,900$Operating profits$ $1,031,100$

Sales volume is expected to increase by $30$ percent in May, but the sales price is expected to fall $5$ percent. Variable manufacturing costs are expected to increase by $7\mathrm{.}5$ percent per unit in May. In addition to these cost changes, variable manufacturing costs also will change with sales volume. Marketing and administrative cash costs are expected to increase by $15$ percent.

All revenues and costs at Cymbal are cash transactions, except for depreciation. Cymbal maintains no inventories. Depreciation is fixed and is forecast to remain unchanged in the next six months.

Required:

Prepare a budgeted income statement for May.

July$270$August$290$September$340$October$250$November$210$December$240$

Required:

What are the expected revenues for Curtis Party Rentals for each month, July through December? Revenues are recorded in the month of the event.

What are the expected cash receipts for each month, July through October?

Estimated payments in August for purchases in August$70\%$Estimated purchases for August$ $2,416,000$Estimated cost of goods sold for August$2,530,000$Estimated payments in August for purchases in July$654,000$Estimated payments in August for purchases prior to July$148,000$Inventories at beginning of August$646,000$

Required:

What are the estimated cash disbursements in August?

Eliot wishes to have in stock enough nozzles to use for the coming month. On August $1,$ the company has $18,000$ nozzles in stock, although the latest estimate for August production indicates a requirement for only $17,400$ nozzles. Total uses of the nozzle are expected to be $17,100$ in September and $17,940$ in October.

Nozzles are purchased at a wholesale price of $$20.$ Eliot pays $25$ percent of the purchase price in cash in the month when the parts are delivered. The remaining $75$ percent is paid in the following month. Eliot purchased $33,000$ parts in July.

Required:

Estimate purchases of the nozzle $($in units$)$ for August and September.

Estimate the cash disbursements for nozzles in August and September.