a. Sales are 70% cash and 30% credit. Credit sales are collected 30% in the month of sale and the remainder in the month after sale. Actual sales in December were $54.000. Schedules of budgeted sales for the two months of the upcoming year are as follows: Budgeted Sales January.. February Revenue $ 63,000 $ 72,000 b. Actual purchases of direct materials in December were $25,500. The company's purchases of direct materials in January are budgeted to be $23,500 and $26,500 in February. All purchases are paid 50% in the month of purchase and 50% the following month. c. Salaries and sales commissions are also paid half in the month earned and half the next month. Actual salaries were $8,000 in December, Budgeted salaries in January are $9,000 and February budgeted salaries are $10,500 Sales commissions each month are 8% of that month's sales. d. Rent expense is $3,400 per month. e. Depreciation is $2,700 per month. f. Estimated income tax payments are made at the end of January. The estimated tax payment is projected to be $12,000. g. The cash balance at the end of the prior year was $18,000.