Data Table December 31,2017, account balances: Cash Accounts Receivable Merchandise Inventory Accounts Payable Salaries and Commissions Payable 32,000 21,000 24,000 14,000 2,800 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 83,000 $ 40,800 4,150 4,000 2,000 400 200 2,500 85,300 41,000 4,265 4,000 2,000 400 200 2,500 Requirements 1. Prepare the schedule of cash receipts from customers for January and February 2018 . Assume cash receipts are 70% in the month of the sale and 30% in the month following the sale. 2. Prepare the schedule of cash payments for purchases for January and February 2018 Assume purchases are paid 70% in the month of purchase and 30% in the month following the purchase. Prepare the schedule of cash payments for selling and administrative 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 will be paid in January. Salaries and commissions are paid 70% in the month incurred and 30% in the following month. Rent and income tax expenses are paid as incurred. Insurance expense is an expiration of the prepaid amount. 3. Ja 4. Prepare the cash budget for January and February 2018. Assume no an is f financing took place. am Ruler Company Budgeted Cash Receipts from Customers Two Months Ended February 28, 2018 January February Current month sales, 70% Prior month sales, 30% Total cash receipts Requirement 2. Prepare the schedule of cash payments for purchases for January and Febr Ruler 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 Ruler Company Budgeted Cash Payments for Selling and Administrative Expenses Two Months Ended February 28, 2018 January February Variable expenses: 30% of last month's Commission Expense of current month's Commission Expense Total payments for variable expenses Fixed expenses 30% of last month's salaries Expense 70% of current month's salaries Expense Rent expense Total payments for fixed expenses Total payments for S and A expenses Ruler 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