(Solved): Case 2: (6 Marks) Abu Dhabi Company has projected sales and production in units for the second quart ...

Case 2: (6 Marks) Abu Dhabi Company has projected sales and production in units for the second quarter of the coming year as follows: \table[[,April,May,June],[,50,00,,],[Sales.................,0,40,000,66,000],[Production.............,60,00,,],[,0,51,000,50,000]] Cash-related production costs are budgeted at

per unit produced. Of these production costs,

are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to

per month. The accounts payable balance on March 31 totals

, which will be paid in April. All units are sold on account for

each. Cash collections from sales are budgeted at

in the month of sale,

in the month following the month of sale, and the remaining

in the second month following the month of sale. Accounts receivable on April 1 totaled from February's sales and the remainder from March). Required: a. Prepare a schedule for each month showing budgeted cash disbursements for the Abu Dhabi Company. (3 Marks) b. Prepare a schedule for each month showing budgeted cash receipts for Abu Dhabi Company. (3 Marks) Show how to do it step by step. And also do it in excel