Printer Company's budget committee provides the following information:

December 31, 2017, account balances:

Cash

$30,000

Accounts Receivable

14,000

Merchandise Inventory

23,000

Accounts Payable

15,000

Salaries and Commissions Payable

3,000

Budgeted amounts for 2018:

January

February

Sales, all on account

$83,000

$83,700

Purchases, all on account

40,700

41,300

Commissions Expense

4,150

4,185

Salaries Expense

7,000

7,000

Rent Expense

1,800

1,800

Depreciation Expense

800

800

Insurance Expense

200

200

Income Tax Expense

1,800

1,800

1.

Prepare the schedule of cash receipts from customers for January and February 2018. Assume cash receipts are 60% in the month of the sale and 40% in the month following the sale.

2.

Prepare the schedule of cash payments for purchases for January and February 2018. Assume purchases are paid 30% in the month of purchase and

70% in the month following the purchase.

3.

Requirement 1

Prepare the schedule of cash receipts from customers for January and February 2018. Assume cash receipts are 60% in the month of the sale and 40% in the month following the sale.

Printer Company
Budgeted Cash Receipts from Customers
Two Months Ended February 28, 2018
	January	February
Current month sales, 60%
Prior month sales, 40%
Total cash receipts

Requirement 2. Prepare the schedule of cash payments for purchases for January and February 2018. Assume purchases are paid 30% in the month of purchase and 70% in the month following the purchase.

Printer Company
Budgeted Cash Payments for Purchases
Two Months Ended February 28, 2018
	January	February
70% of last month's purchases
30% of current month's purchases
Total cash payments for purchases