1. Jo-Jos Yo-yos has the following budgeted sales and direct materials purchases:

Month	Budgeted Sales	Budgeted direct materials purchases
January	$190,000	$30,000
February	$210,000	$35,000
March	$300,000	$45,000

Jo-Jos Yo-yos sales are 40% cash and 60% on credit. It collects credit sales 10% in the month of the sale, 50% in the month following the sale, and 36% in the second month following the sale. 4% of the sales are uncollectible.

Jo-Jos Yo-yos purchases are 50% cash and 50% on account. It pays on account 60% in the month of the purchase and 40% in the month following the purchase.

a. Prepare a schedule of expected cash collections for March

	March
March cash sales
March credit sales collections
January credit sales collections
February credit sales collections
Total cash collections

Prepare a schedule of expected cash payments for direct materials for March (3 marks)

	March
March cash purchases
March credit purchases paid
February credit purchases paid
Total cash collections