Data Table December 31, 2017, account balances Cash Accounts Receivable Merchandise Inventory Accounts Payable Salaries and Commissions Payable 15,000 15,000 18,000 16,000 2,900 Budgeted amounts for 2018 January February Sales, all on account Purchases, all on account Commissions Expense Salaries Expense Rent Expense Depreciation Expense Insurance Expense income Tax Expense 85,000 S 40,500 4,250 4,500 3,200 500 200 2,500 85,300 41,200 4,265rc 4,500 3,200 500 200 2,500 Requirements 1. Prepare the schedule of cash receipts from customers for January and 2. Prepare the schedule of cash payments for purchases for January and 3. Prepare the schedule of cash payments for selling and administrative February 2018 Assume cash receipts are 80% in the month of the sale and 20% in the month following the sale. February 2018 Assume purchases are paid 70% in the month of purchase and 30% in the month following the purchase expenses for January and February 2018 Assume 40% of the accrual for Salaries and Commissions Payable is for commissions and 60% is for salaries. The December 31 balance wll be paid in January. Salaries and commissions are paid 30% in the month incurred and 70% in the following month. Rent and income tax expenses are paid as incurred. Insurance expense is an expiration of the prepaid amount Prepare the cash budget for January and February 2018. Assume no financing took place 4. Requirement 1. Prepare the schedule of cash receipts from customers for January and February 2018. A Paperclip Company Budgeted Cash Receipts from Customers Two Months Ended February 28, 2018 January February Current month sales, 80% Prior month sales, 20% Total cash receipts Requirement 2. Prepare the schedule of cash payments for purchases for January and February 2018. As Paperclip Company Budgeted Cash Payments for Purchases Two Months Ended February 28, 2018 January February 30% of last month's purchases 70% of current month's purchases Total cash payments for purchases Paperclip Company Budgeted Cash Payments for Selling and Administrative Expenses Two Months Ended February 28, 2018 January February Variable expenses: 70% of last month's commission Expense 30% of current month's Commission Expense Total payments for variable expenses Fixed expenses 70% of last month's Salaries Expense 30% of current month's salanes Expense Rent expense Totai payments for fixed expenses Total payments for S and A expenses Requirement 4. Prepare the cash budget for January and February 2018. Assume no financing took place. Paperclip Company Cash Budget Two Months Ended February 28, 2018 January February Beginning cash balance Cash receipts from customers Cash available Cash payments Purchases of merchandise inventory Selling and administrative expenses Payments for income taxes Total cash payments Ending cash balance