1 )The budgeted sales for the first quarter are listed below.

January February March Total for Quarter

Budgeted Sales 270,000 360,000 450,000 1,080,000

Additional information:

• Sales commissions equal 20% of sales and are paid each month.
• Sales salaries (excluding commission) are $90,000 per year.

What are the total selling expenses for the quarter?

2 )Expected cash collection pattern is 60% in the month of sale and 40% in the following month. Given the sales budget presented below, how much cash is expected to be collected in January?

October November DecemberJanuary

Budgeted Credit Sales 40,00050,000 60,000 35000