Ivanhoe Company's budgeted sales and direct materials purchases follow. January was the first month of operations. Budgeted sales: January $138,800; February $190,800; March $251,600 Budgeted direct materials purchases: January $39,700; February $34,900; March $40,100 Ivanhoe's sales are 35% cash and 65% credit. It collects credit sales 40% in the month of sale, 60% in the month following the sale. Ivanhoe's purchases are 40% cash and 60% on account. It pays purchases on account 60% in the month of purchase, and 40% in the month following purchase. Prepare a schedule of expected collections for January, February, and March. Ivanhoe Company Expected Collections Collections: Cash sales Collections of credit sales: January sales February sales March sales $ Total collections $ January $ $ February Prepare a schedule of expected payments for direct materials for January, February and March. Payments: Cash purchases $ Payment of credit purchases: January purchases February purchases $ $ March Ivanhoe Company Expected Payments January February March $ March purchases Total payments $ $ $