Deitz Corporation is projecting a cash balance of $34,200 in its December 31, 2019, balance sheet. Deitzs schedule of expected collections from customers for the first quarter of 2020 shows total collections of $210,900. The schedule of expected payments for direct materials for the first quarter of 2020 shows total payments of $49,020. Other information gathered for the first quarter of 2020 is sale of equipment $3,420; direct labor $79,800, manufacturing overhead $39,900, selling and administrative expenses $51,300; and purchase of securities $15,960. Deitz wants to maintain a balance of at least $28,500 cash at the end of each quarter. Prepare a cash budget for the first quarter.

2. Nieto Companys budgeted sales and direct materials purchases are as follows.

		Budgeted Sales		Budgeted D.M. Purchases
January		$255,000		$39,100
February		220,900		46,100
March		326,000		48,500

Nietos sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Nietos purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase. (a) Prepare a schedule of expected collections from customers for March.

(b) Prepare a schedule of expected payments for direct materials for March.