Homework $24-1$

Marco's budgeted sales and direct material purchases are as follows:

Marco's sales are $30\%$ cash and $70\%$ credit. Credit sales are collected $20\%$ in the month of sale, $40\%$ in

the month following the sale, $36\%$ in the second month following the sale, and $4\%$ are uncollectible.

Marco's purchases are $50\%$ cash and $50\%$ on account. Purchases on account are paid $60\%$ in the month

of the purchase and $40\%$ in the month following the purchase. Direct labor and overhead for

each month is estimated to be $$125,000.$

March $1$ beginning cash is estimated to be $$48,000.$