Bailey Industries expects sales for January, February, and March to be $220,000, $260,000, and $300,000 respectively. It is expected that 75% of its sales will be collected in cash during the month of sale, and the remaining 25% will be collected in the month following the sale.

Compute cash collections for Bailey Industries for the month of February.

A. $250,000

B. $290,000

C. $225,000

D. $300,000

Sun Industries' budgeted sales and direct materials purchases are as follows:

	Budgeted Sales	Budgeted DM Purchases
January	$200,000	$30,000
February	$220,000	$36,000
March	$250,000	$38,000

Sales are 30% cash and 70% credit. Credit sales are collected in the month following sale. Direct materials purchases are paid 40% cash in the month of purchase and 60% in the month following purchase.

What are budgeted cash payments for DM purchases for the month of February?

A. $32,400

B. $36,000

C. $33,000

D. $36,800