Brian's Restaurant Supply is preparing its cash budgets for the first two months of the upcoming year. Here is the information about the company's upcoming cash receipts and cash disbursements:

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Requirements

Prepare schedules of $($a$)$ budgeted cash collections, $($b$)$ budgeted cash payments for purchases, and $($c$)$ budgeted cash payments for operating expenses. Show totals for each month and totals for January and February combined.

Prepare a combined cash budget. If no financing activity takes place, what is the budgeted cash balance on February $28?$

Requirement $1$a$.$ Prepare a schedule of budgeted cash collections for January and February. Show totals for each month and totals for January and February combined.

Brian's Restaurant Supply

Cash Collections Budget

For the Months Ended January $31$ and February $28$

January

Cash sales

Collection on credit sales

Total cash collections

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More info

a$.$ Sales are $60\%$ cash and $40\%$ credit. Credit sales are collected $20\%$ in the month of sale and the remainder in the month after sale. Actual sales in December were $$56,000.$ Schedules of budgeted sales for the two months of the upcoming year are as follows:

$\backslash$table$[[,\backslash$table$[[$Budgeted Sales$],[$Revenue$]]],[$January $.............$ $$,61,000],[$February $............$ $$,67,000]]$

b$.$ Actual purchases of direct materials in December were $$23,000.$ The company's purchases of direct materials in January are budgeted to be $$22,500$ and $$28,000$ in February. All purchases are paid $30\%$ in the month of purchase and $70\%$ the following month.

c$.$ Salaries and sales commissions are also paid half in the month earned and half the next month. Actual salaries were $$7,000$ in December. Budgeted salaries in January are $$8,000$ and February budgeted salaries are $$9,500.$ Sales commissions each month are $8\%$ of that month's sales.

d$.$ Rent expense is $$2,700$ per month.

e$.$ Depreciation is $$2,400$ per month.

f$.$ Estimated income tax payments are made at the end of January. The estimated tax payment is projected to be $$11,500.$

g$.$ The cash balance at the end of the prior year was $$22,000.$