P22-52B Preparing a financial budget-schedule of cash receipts, schedule of cash payments, cash budget Beasley Company's budget committee provides the following information: December 31, 2017, account balances: Cash $ 32,000 19,000 Accounts Receivable Merchandise Inventory Accounts Payable Salaries and Commissions Payable 16,000 15,000 2,900 Budgeted amounts for 2018: January February $ 84,400 41,600 Sales, all on account Purchases, all on account Commissions Expense Salaries Expense Rent Expense Depreciation Expense Insurance Expense Income Tax Expense $ 84,000 41,000 4,200 5,000 2,200 4,220 5,000 2,200 500 500 200 200 1,900 1,900 Requirements 1. Prepare the schedule of cash receipts from customers for January and February 2018. Assume cash receipts are 80% in the month of the sale and 20% in the month following the sale. Feb. total cash recpts. $84,320 2. Prepare the schedule of cash payments for purchases for January and February 2018. Assume purchases are paid 70% in the month of purchase and 30% in the month following the purchase. 3. Prepare the schedule of cash payments for selling and administrative expense for January and February 2018. Assume 25% of the accrual for Salaries and Commissions Payable is for commissions and 75% is for salaries. The December 31 balance will be paid in January. Salaries and commissions are paid 70% in the month incurred and 30% in the following month. Rent and income tax expenses are paid as incurred. Insurance expense is an expiration of the prepaid amount. Feb. total pmts. for S&A exp. $11,414 4. Prepare the cash budget for January and February. Assume no financing took place. Beasley Company Collections Budget January, February 2019 January February Current Month (80%) Previous Month (20%) Total Collections Total Beasley Company Purchases Budget Jan, Feb 2019 January February 70% Current Month 30% Previous Month Total Payments Total Beasley Company Payments for Operating Expenses Budget Jan, Feb 2019 January February Total Salaries Expense Commissions Expense Rent Expense Total Expenses Income Tax Expense is considered non-operating February Beasley Company Cash Budget Jan, Feb 2019 January Beginning Balance Cash Collections Cash Available Cash Payments: Purchases Operating Expenses Total Cash Payments Income Tax Expense Ending Cash Balance