Oakton Furniture provided the following information relevant to its sales for December 2013 and the first quarter of 2014

Based on the company's collection history, 2% of credit sales are uncollectible, 40% are collected in month of sale and the remainder is collected in the following month. Total budgeted cash receipts in February 2014 are expected to be:

a) 60,000 b) 162,400 c) 346,400 d) 228,000

True or False: The capital budget does not affect any of a company's operating budgets.

True or False: Depreciation expense will appear on the schedule of cash payments for selling and administrative expenses.

Credit sales Cash sales Dec. 2013 Jan. 2014 Feb. 2014 Mar. 2014 (Actual (Budgeted) (Budgeted) (Budgeted) 120,000 280,000 310,000 220,000 20,000 S 50,000 S 60,000 S 24,000