AIM Company’s budgeted sales and direct materials purchases are as follows.

                

AIM’s sales are 40% cash and 60% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. AIM’s purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase.

Instructions
  (a) Prepare a schedule of expected collections from customers for March.
  (b) Prepare a schedule of expected payments for direct materials for March.