SE 8. The projections of direct materials purchases that follow are for the Stromboli Corporation.

Purchases on Cash Account Purchases December, 2010 $40,000 $20,000 January, 2011 60,000 30,000 February, 2011 50,000 25,000 March, 2011 70,000 35,000 The company pays for 60 percent of purchases on account in the month of purchase and 40 percent in the month following the purchase. Prepare a monthly schedule of expected cash payments for direct materials for the first quarter of 2011.

Cash Budget