Homework Evan's Restaurants receipts and cash d (Click the icon Requirements 1. Prepare sche totals for each 2. Prepare a com Requirement 1a. F combined Cash sales Collection on credi Total cash collectio More info a. Sales are 70% cash and 30% credit. Credit sales are collected 20% in the month of sale and the remainder in the month after sale. Actual sales in December were $55,000. Schedules of budgeted sales for the two months of the upcoming year are as follows: January. February Budgeted Sales Revenue $ 64,000 $ 69,000 b. Actual purchases of direct materials in December were $25,000. The company's purchases of direct materials in January are budgeted to be $22,000 and $26,500 in February. All purchases are paid 30% in the month of purchase and 70% the following month. c. Salaries and sales commissions are also paid half in the month earned and half the next month. Actual salaries were $10,000 in December. Budgeted salaries in January are $11,000 and February budgeted salaries are $12,500. Sales commissions each month are 8% of that month's sales.. d. Rent expense is $2,800 per month. e. Depreciation is $2,300 per month. f. Estimated income tax payments are made at the end of January. The estimated tax payment is projected to be $14,000, g. The cash balance at the end of the prior year was $22,000. b. Prepare a sched Print Done Help me solve this Video Get more help- Media - X pcoming cash expenses. Show February ebruary combined Similar question Evan's Restaurant Supply is preparing its cash budgets for the first two months of the upcoming year. Here is the information about the company's upcoming cash receipts and cash disbursements: (Click the icon to view the information.) Requirements 1. Prepare schedules of (a) budgeted cash collections, (b) budgeted cash payments for purchases, and (c) budgeted cash payments for operating expenses. Show totals for each month and totals for January and February combined. 2. Prepare a combined cash budget. If no financing activity takes place, what is the budgeted cash balance on February 28? Requirement 1a. Prepare a schedule of budgeted cash collections for January and February. Show totals for each month and totals for January and February combined. Evan's Restaurant Supply Cash Collections Budget For the Months Ended January 31 and February 28 January February Total Cash sales $ Collection on credit sales 44,800 $ 17,040 48,300 $ 93,100 19,500 36,540 $ 61,840 $ 67,800 $ 129,640 Total cash collections b. Prepare a schedule of budgeted cash payments for purchases for January and February. Show totals for each month and totals for January and February combined. Evan's Restaurant Supply Cash Payments for Material Purchases Budget For the Months Ended January 31 and February 28 January February Total 30% of current month DM purchases $ 6,600 $ 7,950 $ 14,550 70% of last month's DM purchases 17,500 15,400 32,900 Total cash payments $ 24,100 $ 23,350 $ 47,450 n Prenare a schedule of hu Evan Restaurant Supply Cash Payments for Operating Expenses Budget For the Months Ended January 31 and February 28 January February Total Variable cash operating expenses: Sales commissions: December 2,200 $ 2,200 Sales commissions: January 2,560 $ 2,560 5,120 Sales commissions: February 2,760 2,760 Total variable cash operating expenses 4,760 5,320 10,080 Fixed ash operating expenses: Sales salaries: December 5,000 5,000 Sales salaries: January 5,500 5,500 11,000 Sales salaries: February 6,250 6,250 Rent expense Tax expense 2,800 2,800 5,600 14,000 14,000 Total fixed cash operating expenses 27,300 14,550 41,850 $ 32,060 $ 19,870 $ 51,930 Total cash payments for operating expenses Requirement 2. Prepare a combined cash budget for January and February. If no financing activity takes place, what is the budgeted cash balance on February 28? Evan's Restaurant Supply Combined Cash Budget For the Months Ended January 31 and February 28 ww Begining cash balance Plus: Cash collections from customers Total cash available Less cash payments: Direct materials purchases Operating expenses Total cash payments Ending cash balance January February 2 months 22,000 $ 27,680 $ 22,000 61,840 67,800 129,640 83,840 95,480 151,640 (24,100) (23,350) (47,450) (32,060) (19,870) (51.930) (56,160) (43,220) (99,380) $ 27.680 $ 52,260 $ 52,260