Howe Company's budgeted sales and direct materials purchases are as follows.

Budgeted Sales Budgeted D.M. Purchases

April $400,000 $70,000

May 440,000 80,000

June 460,000 90,000

Howe's sales are 100% on credit. Credit sales are collected 5% in the month of sale, 55% in the month following sale, and 32% in the second month following sale; 6% are uncollectible. Howe's purchases are 100% on account. Purchases on account are paid 45% in the month of purchase, and 55% in the month following purchase.

Instructions

(a) Prepare a schedule of expected collections from customers for June.

(b) Prepare a schedule of expected payments for direct materials for June.