Paddu Companys budgeted sales and direct materials purchases follow January was the first month of operations Budgeted sales January $138,900 February $189,900 March $249,400 Budgeted direct materials purchases January $40,100 February $34,800 March $39,900 Paddus sales are 35 cash and 65 credit It collects credit sales 40 in the month of sale, 60 in the month following the sale Paddus purchases are 40 cash and 60 on account It pays purchases on account 60 in the month of purchase, and 40 in the month following purchase Prepare a schedule of expected collections for January, February, and March Paddu Company Expected Collections January February March Collections $ $ $ Cash sales Collections of credit sales January sales February sales March sales $ $ $ Total collections Prepare a schedule of expected payments for direct materials for January, February and March Paddu Company Expected Payments January February March Payments $ $ $ Cash purchases Payment of credit purchases January purchases February purchases March purchases $ $ $ Total payments

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 21, 2024

Paddu Companys budgeted sales and direct materials purchases follow. January was the first month of operations. Budgeted sales: January $138,900; February $189,900; March $249,400 Budgeted

Paddu Companys budgeted sales and direct materials purchases follow. January was the first month of operations.

Budgeted sales:

January $138,900; February $189,900; March $249,400

Budgeted direct materials purchases:

January $40,100; February $34,800; March $39,900

Paddus sales are 35% cash and 65% credit. It collects credit sales 40% in the month of sale, 60% in the month following the sale.

Paddus purchases are 40% cash and 60% on account. It pays purchases on account 60% in the month of purchase, and 40% in the month following purchase.

image text in transcribed

Prepare a schedule of expected collections for January, February, and March. Paddu Company Expected Collections January February March Collections: $ $ $ Cash sales Collections of credit sales: January sales February sales March sales $ $ $ Total collections Prepare a schedule of expected payments for direct materials for January, February and March. Paddu Company Expected Payments January February March Payments: $ $ $ Cash purchases Payment of credit purchases: January purchases February purchases March purchases $ $ $ Total payments