Consider the budgeted income in Exhibit 7-12. The cash balance, May 31, 2004, is $15,000. Sales proceeds are collected as follows: 80% month of...

1. Consider the budgeted income in Exhibit 7-12. The cash balance, May 31, 2004, is $15,000. Sales proceeds are collected as follows: 80% month of sale, 10% second month, 10% third month. Accounts receivable are $44,000 on May 31, 2004, consisting of $16,000 from April sales and $24,000 from May sales.