D AC 436 Assignment Number 2 Watson Company has projected sales and production in units for the second quarter of the coming year as follows: April 55,000 65,000 May June 65,000 55,000 Sales 45,000 55,000 Cash-related production costs are budgetedarsz per unit produced. Of these production costs, 40%are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to S110,000 per month. The accounts payable balance on March 31 totals $193,000, which will be paid in April. All units are sold on account for S 16 each. Cash collections from sales are budgeted at 60% in the month of sale, 30% in the month following the month of sale, and the remaining109 in he second month following the month of sale. Accounts receivable on April 1 totaled $520,000 ($100,000 from February's sales and the remainder from March). Required a) Calculate the budgeted cash disbursements for each month for Watson Company. b) Calculate the budgeted cash receipts for each month for Watson Company