Exercise D5-25 Maria Bockman, Bates & Hill Fabricators' accounts payable manager, has just received the company's direct materials purchases budget for the first quarter January February March Quarter Budgeted purchase cost $25,812 $48,556 42,780 $117,148 The company makes all of its direct materials purchases on account. Maria's recent review of the company's payment history revealed that the company pays for 50% of its direct materials purchases in the month of purchase and 50% in the month following purchase. The company expects to have an accounts payable balance of $16,020 on January 1, and this amount represents the remaining payables from December's direct materials purchases. Prepare Swifty & Hill's cash payments budget for the coming year. (Round answers to 0 decimal places, e.g. 5,275. Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.) Cash Payments Budget February January March Total Cash Payments December AP January purchase:s February purchases March purchases Total Prepare Swifty & Hill's cash payments budget for the first quarter. Accounts Payable balance Exercise D5-26 Will Benjamin has been working on Sheffield Paints' cash budget for the coming year. Based on his projections for March, the beginning cash balance will be $50,043; cash collections will be $700,000; and cash disbursements will be $710,560. Sheffield Paints desires to maintain a $50,000 minimum cash balance. The company has a 10% open line of credit with its bank, which provides short-term borrowings in $500 increments. AlI borrowings are made at the beginning of the month, and all repayments are made at the end of the month (in $500 increments). When partial payments are made against the line of credit, accrued interest applicable to the full amount due through that date is paid along with the partial principal repayment. (a) How much will Sheffield Paints need to borrow from the bank at the beginning of March? Sheffield Paints should borrow (b) Sheffield anticipates having a positive $7,000 net cash flow from April activities. How much of the line of credit from March can be repaid? How much interest will be repaid in April? (Round interest repaid answer to the nearest whole dollar amount, e.g. 5,275.) Principal to be repaid Interest to be repaid