Tuscaloosa Company seeks assistance in developing cash and other budget information for May, June, and July. On April 30, the company had cash of $5,500, accounts receivable of $437,000, inventories of $309,400, and accounts payable of $133,055. The budget is to be based on the following assumptions:
Sales:
(a) Each month's sales are billed on the last day of the month.
(b) Customers are allowed a 3% discount if payment is made within 10 days after the billing date. Receivables are recorded at the gross sales price.
(c) Sixty percent of the billings are collected within the discount period; 25% by the end of the month; 9% by the end of the second month; and 6% prove uncollectible.
Purchases:
(a) Fifty-four percent of all purchases of materials and a like percentage of marketing, general, and administrative expenses are paid in the month purchased, with the remainder paid in the following month.
(b) Each month's units of ending materials inventory are equal to 130% of next month's production requirement.
(c) The cost of each unit of inventory is $20.
(d) Wages and salaries earned each month by employees total $38,000.
(e) Marketing, general, and administrative expenses (of which $2,000 is depreciation) are equal to 15% of the current month's sales. Actual and projected sales are as follows:

Actual and projected materials needed for production:

Accrued payroll at the end of each month is as follows:

Required:
Compute the following:
(1) Budgeted cash disbursements during June.
(2) Budgeted cash collections during May.
(3) Budgeted units of inventory to be purchased during July.

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March. April... May June $354,000 363,000 357,000 342,000 360,000 366,000 July. August Units 11,800 12,100 11,900 11.400 12,000 12,200 March April.. May. une... July August. $3,100 2,900 3,300 3,400 3,000 2,800 arch.. April May June July August