Question
Paddu Company's budgeted sales and direct materials purchases follow. January was the first month of operations. Budgeted Sales:January $140,000; February $190,000; March $250,000Budgeted Direct Materials
Paddu Company's budgeted sales and direct materials purchases follow. January was the first month of operations.
Budgeted Sales:January $140,000; February $190,000; March $250,000Budgeted Direct Materials Purchases:January $40,000; February $35,000; March $40,000Paddu's sales are35% cash and65% credit. It collects credit sales40% in the month of sale,60% in the month following the sale.Paddu's purchases are40% cash and60% on account. It pays purchases on account60% in the month of purchase, and40% in the month following purchase.
a. We expect a schedule of expected collections for January, February, and March.(Round answers to 0 decimal places, e.g. 5,275.)
b. We expect schedule of expected payments for direct materials for January, February and March.(Round answers to 0 decimal places, e.g. 5,275.)
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