E10.29 (LO 4) NIU Companys budgeted sales and direct materials purchases are as follows:

		Budgeted Sales		Budgeted Direct Materials Purchases
January		$190,000		$30,000
February		210,000		35,000
March		300,000		45,000

NIUs sales are 40% cash and 60% credit. It collects credit sales 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. NIUs purchases are 50% cash and 50% on account. It pays purchases on account 60% in the month of purchase, and 40% in the month following purchase.

Instructions

1. Prepare a schedule of expected collections from customers for March.
2. Prepare a schedule of expected payments for direct materials for March.

Prepare schedules for cash receipts and cash payments, and determine the ending balances for the relevant balance sheet accounts.