More info 4: a. Sales are 75% cash and 25% credit. Credit sales are collected 20% in the month of sale and the remainder in the month after sale. Actual sales in December were $56,000. Schedules of budgeted sales for the two months of the upcoming year are as follows: Budgeted Sales Revenue January. February. $ 62,000 69,000 b. Actual purchases of direct materials in December were $24,500. The company's purchases of direct materials in January are budgeted to be $24,000 and $26,500 in February. All purchases are paid 25% in the month of purchase and 75% the following month. c. Salaries and sales commissions are also paid half in the month earned and half the next month. Actual salaries were $7,500 in December. Budgeted salaries in January are $8,500 and February budgeted salaries are $10,000. Sales commissions each month are 15% of that month's sales. d. Rent expense is $2,900 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 $13,500. g. The cash balance at the end of the prior year was $22,000. Brett's Restaurant Supply in preparing its cash budgets for the U Click the icon to view the information) Requirements 1 2 Prepare schedules of la) budgeted cash collections, (b) budgeted cash payments for purchases, and (c) budgeted cash payments for operating expenses Show foals for each month and for January and Fatrary combined Prepare a combined cash budget. If no financing activity takes place. what is the budgeted sash balance on February 287 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. Brett's Restaurant Supply Cash sales Cash Collections Budget For the Months Ended January 31 and February 28 Collection on credit sales Total cash collections January February Total 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 Brett's Restaurant Supply Cash Payments for Material Purchases Budget For the Months Ended January 31 and February 28 25% of current month DM purchases 75% of last month's DM purchases Total cash payments January February Total c. Prepare a schedule of budgeted cash payments for operating expenses for January and February. Show totais for each month and totals for January and February combined an input fed used the e input field empty, do not enter a zero. Found all amounts to the nearest dolor.) Brett Restaurant Supply Cash Payments for Operating Expenses Budget For the Months Ended January 31 and February 28 Variable cash operating expenses Salus commissions December Salis commissions January Sales commissions: February Total variable cash operating expenses Flaed cash operating expenses Sales salaries December Sales salaries: January Sales salaries February January February Total Variable cash operating expenses: Sales commissions: December Sales commissions: January Sales commissions: February Total variable cash operating expenses Fixed cash operating expenses: Sales salaries: December Sales salaries: January Sales salaries: February Rent expense Tax expense Total fixed cash operating expenses 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? Brett's Restaurant Supply Combined Cash Budget For the Months Ended January 31 and February 28 Beginning 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