Question: South Loop Bikes (SLB) purchases bicycle components in the month prior to assembling them into bicycles. Assembly is scheduled one month prior to budgeted sales.

South Loop Bikes (SLB) purchases bicycle components in the month prior to assembling them into bicycles. Assembly is scheduled one month prior to budgeted sales. SLB pays 75% of component costs in the month of the purchase and 25% of the costs in the following month. Component costs included in budgeted cost of sales are:

AprilMayJuneJulyAugust

$5,000$6,000$7,000$8,000$8,000

What is SLB's budgeted cash payment for components in May?

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