Problem 2 Reprin Corporation's sales of shoes on account. Past collection, history indicates that credit sales are collected as follows: 30% in the month of sale 60% in the month following sale 10% in the second month following sale In January, sales were $42,000 and February sales were $45,000. Projected sales for March are 4,800 pares de zapatos at $10 each pair ($48,000). Projected sales for April are 5,000 zapatos at $12 each pair ($60,000). The cash balance at March 1, 2019 was $6,850. Roprin expects to purchase $26,000 of materials in February and $28,000 of materials in March. Three-quarters (75%) of all purchases are paid for in the month of purchase, and the other one- fourth (25%) is paid for in the month following the month of purchase. All other fixed expenses are $8,000 per month and are paid in the month incurred. Financial Section (borrowings and/or payments are not considered. Instructions: A. Prepare the cash collections and cash payments schedules for March 2019. B. Prepare a cash budget for the month ended 31 March 2019. Solution Problem II Expected Collections for Credit Sales January 30% $ February 60% S 30% Marc S 10% 60% January. (Credit Sales = February (Credit Sales = March (Credit Sales = Total Creit Sales Collections 30% S Expected Payments for Direct Materials February 75% February (Credit purchases. = March (Credit purchases = Total Payments March 25% 75% Rortin Corporation Cash Budget For the month ended 31 March 2019 Beginning Balance Add: Cash Collections for March Styles Total Payments Ropcin Corporation Cash Budget For the month ended 31 March 2019 Beginning Balance Add: Cash Collections for March Total Cash Available Less: Cash Disbursements: Cash payments for March purchases Other fixed expenses Total Cash Disbursements for March Net cash receipts over (under) payments = (Ending Cash Balance) S S