2. 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 cash sales,

March credit sales collections,

January credit sales collections,

February credit sales collections,

Total cash collections.

a. Prepare a schedule of expected cash payments for direct materials for March.

March cash purchases,

March credit purchases paid,

February credit purchases paid,

Total cash collections.