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

Budgeted sales:

January $140,600; February $189,800; March $250,700

Budgeted direct materials purchases:

January $39,600; February $34,800; March $40,200

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		$		$		$