Question 7 (5 points) Use the information below for Finch Company to answer the questions that follow. Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: June April $156,800 May. $195,200 $217,600 Manufacturing costs (1) Insurance expense (2) Depreciation expense Property tax expense 1,000 1,000 2,000 500 1,000 2,000 2,000 500 500 (3) (1) of the manufacturing costs, three-fourths are paid for in the month they are incurred and one-fourth is paid for in the following month. (2) Insurance expense is $1,000 a month; however, the insurance is paid four times yearly, in the first month of the quarter (i.e., January, April, July, and October). (3) Property tax is paid once a year in November The cash payments expected for Finch Company in the month of May are O $185,600 $149,900 O $187,600 $189,100 Question 8 (5 points) A company's history indicates that 20% of its sales are for cash and the rest are on credit. Collections on credit sales are 20% in the month of the sale, 50% in the next month, 25% the following month, and 5% is uncollectible. Projected sales for December, January, and February are $60,000, 585,000, and $95,000, respectively. The February expected cash receipts from all current and prior credit sales are 561,200 $57,000 566,400 $90,250