The following information is budgeted for McCracken Plumbing Supply Company for next quarter:     April May June Sales P110,000 P130,000 P180,000 Merchandise purchases P85,000 P 92,000 P105,000 Selling and administrative expenses P 50,000 P 50,000 P 50,000       All sales at McCracken are on credit

The following information is budgeted for McCracken Plumbing Supply

Company for next quarter:

April May June

Sales P110,000 P130,000 P180,000

Merchandise purchases P85,000 P 92,000 P105,000

Selling and administrative expenses P 50,000 P 50,000 P 50,000

All sales at McCracken are on credit. Forty percent are collected in the month of sale, 58% in the month following the sale, and the remaining 2% are uncollectible. Merchandise purchases are paid in full the month following the month of purchase. The selling and administrative expenses above include P8,000 of depreciation on display fixtures and warehouse equipment. All other selling and administrative expenses are paid as incurred. Malayan wants to maintain a cash balance of P15,000. Any amount below this can be borrowed from a local bank as needed in increments of P1,000. All borrowings are made at month end.

1. Prepare McCracken's cash budget for the month of May. Use good form. McCracken expects to have P24,000 of cash on hand at the beginning of May.
2. Schedule of Budgeted Cash Collections
3. Schedule of Budgeted Cash Payments