using the attached excel workbook, complete the exercises 8-1 and 8-2.

Silver Company Sales Budget Second Quarter April May Budgeted Sales $ 300,000 $ 500,000 Total 2nd June Quarter $ 200,000 $1,000,000 Silver Company Schedule of expected cash collections Second Quarter June May 20,000 April Beginning Accounts Receivable $ 75 000 $ April Sales May Sales June Sales Total Cash Collections S 75,000 $ Total 2nd Quarter $ 101.000 $ $ $ $ 101,000 Collections: Month of Sale Month after sale Second Month after sale 70% 20% 10% 26,000 $ April May Beginning Accounts Receivable $ 490,000 Add sales revenue $ 1.000.000 $1.490,000 Less: Cash Collections $ Ending Accounts Receivable $ Accounts Receivable Collection: February Sales March Sales Total collections $ 230,000 $ 23,000 $ 200,000 $ 52 000 $ 26,000 $ 75,000 $ 26,000 EXERCISE 8-1 Schedule of Expected Cash Collections LO8-2 Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year, as shown in the company's sales budget for the second quarter given below: April May June Budgeted sales (all on account). $300,000 $500,000 Total $200,000 $1,000,000 From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $230,000, and March sales totaled $260,000. Required: 1. Using Schedule I as your guide, prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. 2. What is the accounts receivable balance on June 30th? EXERCISE 8-2 Production Budget L08-3 Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows: Unit Sales April.. May June. July 50,000 75,000 90,000 80,000 + The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of-month inventory levels must equal 10% of the following month's unit sales. The inventory at the end of March was 5,000 units. Required: Using Schedule 2 as your guide, prepare a production budget by month and in total, for the second quarter