Coolidge Company is preparing a cash budget for the first three months of 2021.The following budgeted information is available:

2020

2021Budgeted Item:NovemberDecemberJanuaryFebruaryMarchSales$1,075,000$1,180,000$1,290,000$1,250,000$1,160,000

Direct Material Purchases$169,000

$189,600$202,400$198,300$184,200Direct Labor Costs$345,000

$377,000$394,000$377,000$358,000Overhead Costs$312,400$328,400$336,800$332,500$328,200Selling and Admin Costs$299,000$301,500$304,000$303,000$301,000

All sales are on account.All direct material purchases are on account.All costs besides direct material purchases are paid as incurred.The overhead costs include $4,000 of monthly depreciation and the selling and administrative costs include $2,000 of monthly depreciation.In February, Coolidge must make an $8,500 installment payment on a notes payable, and in March, Coolidge must make a $15,200 property tax payment. The projected beginning balance of cash on January 1 is $7,500.Coolidge would like to maintain a minimum $7,500 cash balance.

Required:

Part A

In the attached workpaper #2:

1. Using the collection pattern indicated on the workpaper, prepare a schedule of cash collection from sales for January, February, and March.(9 pts)
2. Using the payment pattern indicated on the workpaper, prepare a schedule of cash payments for direct materials for January, February, and March.(6 pts)
3. Prepare a cash budget for January, February, and March. (23 pts)

Part B

1. What is the expected Accounts Receivable balance at the end of March? (3 pts)
2. What is the expected Accounts Payable balance at the end of March? (1 pt)