Cash Payments for Operating Expenses Budget a. Sales are 65% cash and 35% credit. Credit sales are collected 30% in the January February month of sale and the remainder in the month after sale. Actual sales in December were $56,000. Schedules of budgeted sales for the 2 months of the Variable cash operating expenses upcoming year are as follows: Sales commissions. December Budgeted Sales Revenue Sales commissions. January January $60.000 Sales commissions: February February $70.000 Total variable cash operating expenses b. Actual purchases of direct materials in December were $23,500. John's purchases of direct materials in January are budgeted to be $22,500 and Fixed cash operating expenses $27,000 in February All purchases are paid 25% in the month of purchase and Sales salaries. December 75% the following month. c. Salaries and sales commissions are paid half in the month earned and half the Sales salaries, January next month. Actual salaries were $7,000 in December. Budgeted salaries in Sales salaries February January are $8.000 and February budgeted salaries are $9,500. Sales commissions each month are 8% of that month's sales. Rent expense d. Rent expense is $3.200 per month Tax expense e. Depreciation is $2,600 per month. f. Estimated income tax payments are made at the end of January. The estimated Total fixed cash operating expenses tax payment is projected to be $13,000 Total cash payments for operating expenses g. The cash balance at the end of the prior year was $18,000