Gary's Restaurant Supply is preparing its cash budgets for the first two months of the upcoming year. Here is the inflomation about the compary's upcoming cash recepts and cash disbursoments: ( ) (Click the icon to view the information) Requirements 1. Prepare schedules of (a) budgeted cash collections, (b) budgeted cash payments tor purchases, and (c) budgeted cash payments for operating expenses, Show totais for each month and totals for January and February combined 2. Prepare a combined cast budget. If no financing activity takes place, what is the budgeted cash bulance on febnury 28 ? Sales are 60% cash and 40% credit. Credit sales are collected 20% in the month of sale and the remainder in the month after sale. Actual sales in December were $57,000. Schedules of budgeted sales for the two months of the upcoming year are as follows: b. Actual purchases of direct materials $ December were $25,500. The company's purchases of direct materials in January are budgeted to be $21,000 and $26,000 in February. All purchases are paid 40% in the month of purchase and 60% the following month. c. Salaries and sales commissions are also paid half in the month eamed and half the next month. Actual salaries were $9,500 in December, Budgeted salaries in January are $10,500 and February budgeted salaries are $12,000. Sales commissions each month are 12% of that month's sales. d. Rent expense is $3,200 per month. e. Depreciation is $2,400 per month. f. Estimated income tax payments are made at the end of January. The estimated tax payment is nroiectad in he $12500 sales for the two months of the upcoming year are as follows: b. Actual purchases of direct materials in December were $25,500. The company's purchases of direct. materials in January are budgeted to be $21,000 and $26,000 in February. All purchases are paid 40% in the month of purchase and 60% the following month. c. Salaries and sales commissions are also paid half in the month earned and half the next month. Actual salaries were $9,500 in December. Budgeted salaries in January are $10,500 and February budgeted salaries are $12,000. Sales commissions each month are 12% of that month's sales. d. Rent expense is $3,200 per month. e. Depreciation is $2,400 per month. f. Estimated income tax payments are made at the end of January. The estimated tax payment is projected to be $12,500. g. The cash balance at the end of the prior year was $19,000