Budgets for Cash Collections from Sales and Cash Payments for Purchases. Car Products, Inc., produces car covers. The dollar amount of the company's quarterly sales and direct materials purchases are projected to be as follows $($this information is derived from the previous exercises

$1$st

$2$nd

$3$rd

$4$th

Sales

$ $3,510,000$

$ $5,850,000$

$ $7,020,000$

$ $4,680,000$

Direct materials purchases $$434,928$ $$649,584$ $$696,336$ $$543,408$

Assume all sales are made on credit. The company expects to collect $80$ percent of sales in the quarter of sale and $20$ percent the quarter following the sale. Accounts receivable at the end of last year totaled $$600,000,$ all of which will be collected in the first quarter of the coming year.

Assume all direct materials purchases are on credit. The company expects to pay $90$ percent of purchases in the quarter of purchase and $10$ percent the following quarter. Accounts payable at the end of last year totaled $$45,000,$ all of which will be paid in the first quarter of this coming year.