a. Sales are 65% cash and 35% credit. Credit sales are collected 30% in the Requirement 1a. Prepare a schedule of budgeted cash collections for January and February month of sale and the remainder in the month after sale. Actual sales in December were $56,000 Schedules of budgeted sales for the 2 months of the Cash Collections Budget upcoming year are as follows January February Budgeted Sales Revenue Cash sales January $60,000 Credit sales February $70 000 b. Actual purchases of direct materials in December were $23,500. John's Total cash collections purchases of direct materials in January are budgeted to be $22,500 and $27,000 in February. All purchases are paid 25% in the month of purchase and b. Prepare a schedule of budgeted cash payments for purchases for January and February (Leave 75% the following month c. Salaries and sales commissions are paid half in the month earned and half the Cash Payments for Direct Material Purchases Budget next month. Actual salaries were $7,000 in December. Budgeted salaries in January February January are $8,000 and February budgeted salaries are $9,500. Sales commissions each month are 8% of that month's sales. December purchases d. Rent expense is $3,200 per month January purchases e. Depreciation is $2,600 per month f. Estimated income tax payments are made at the end of January The estimated February purchases tax payment is projected to be $13,000 Total cash payments for direct material purchases g. The cash balance at the end of the prior year was $18,000