More info a. Sales are 70% cash and 30% credit. Credit sales are collected 30% in the month of sale and the remainder in the month after sale. Actual sales in December were $53,000. Schedules of budgeted sales for the two months of the upcoming year are as follows: Budgeted Sales Revenue January February.. S 63,000 71,000 b. Actual purchases of direct materials in December were $23,500. The company's purchases of direct materials in January are budgeted to be $20,000 and $25,000 in February. All purchases are paid 40% in the month of purchase and 60% the following month. c. Salaries and sales commissions are also paid half in the month earned and half the next month. Actual salaries were $9,000 in December. Budgeted salaries in January are $10,000 and February budgeted salaries are $11,500. Sales commissions each month are 12% of that month's sales. d. Rent expense is $3,300 per month. e. Depreciation is $2,100 per month. f. Estimated income tax payments are made at the end of January. The estimated tax payment is projected to be $11,500. g. The cash balance at the end of the prior year was $18,000.