#3. Budgeting Problem (Ch 14) Below is the 1st Quarter Sales Budget for Burton Co. Cash Sales Credit Sales Total Budgeted Sales January $400,000 100,000 500,000 February $480,000 120.000 600,000 March $420,000 80,000 500,000 a) Prepare a lt Quarter (January through March) schedule of cash receipts where 50% of Credit Sales (Accounts Receivable) are collected in the month after the sale and the remaining 50% is collected 2 months after the sale. (Assume there are no outstanding Accounts Receivable from the previous year.) Schedule of Cash Receipts January February March Current Cash Sales + Collections of AR Total Budgeted Collections b) Prepare a 1st Quarter (January through March) Inventory Purchases Budget for Burton where: . Monthly Cost of Goods Sold is 50% of that month's Total Budgeted Sales. Desired Ending Inventory in a month is 10% of the Cost of Goods sold for that SAME month. Beginning Inventory on January 1t is $35,000 Inventory Purchases Budget January February March Budgeted Cost of Goods Sold + Desired Ending Inventory Inventory Needed - Beginning Inventory Required Purchases