B&B is a retailer of consumer goods. The company generates a gross margin of 25% of sales. Sales are 30% for cash and 70% on credit. Credit sales are collected in the month following sale and accounts receivable on December 31, 2020, are the result of December credit sales. Actual and budgeted sales for the period were as follows:

December 2020(actual)	$150,000
January 2021	$160,000
February 2021	$152,000
March 2021	$162,000
April 2021	$140,000

The company plans for each month's ending inventory to be 30% of the following month's budgeted cost of goods sold. Half of a month's inventory purchases are paid for in the month of purchase; the other half is paid for in the month following purchase. The accounts payable on June 30 are the result of December 2020 purchases of inventory.

Additional Information:

Account Balances as of December 31, 2020:
Cash	$15,000
Accounts receivable	$105,000
Inventory	$48,000
Buildings and equipment, net	$220,000
Accounts payable	$45,000
Capital stock	$150,000
Retained earnings	$195,000

Questions:

1. Using the data above, for the quarter ending March 2021, prepare the following:
2. The schedule of the expected cash collections
3. The merchandise purchases budget