More info a. Sales are 70% cash and 30% credit. Credit sales are collected 10% in the month of sale and the remainder in the month after sale. Actual sales in December were $57,000. Schedules of budgeted sales for the two months of the upcoming year are as follows January. February Budgeted Sales Revenue $ 63,000 69,000 b. Actual purchases of direct materials in December were $25,500. The company's purchases of direct materials in January are budgeted to be $24,000 and $27,000 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 $9,500 in December. Budgeted salaries in January are $10,500 and February budgeted salaries are $12,000. Sales commissions each month are 8% of that month's sales d. Rent expense is $3,200 per month e. Depreciation is $2,800 per month. f. Estimated income tax payments are made at the end of January. The estimated tax payment is projected to be $12,000. g. The cash balance at the end of the prior year was $22,000. 99+ Print Done