Question 1 of 3 20 Points Krestline Manufacturing is preparing its cash budget for the first two months of the upcoming year. The following information concerns the company's upcoming cash receipts and cash disbursements: A. Sales are 65% cash and 35% credit. Credit sales are collected 30% in the month of sale and the remainder in the month after sale. Actual sales in December were $51,000. Schedules of budgeted sales for the first two months of the upcoming year are as follows: Budgeted sales revenue January February $60,000 $73,000 B. Actual purchases of direct materials in December were $25,500. Purchases of direct materials in January are budgeted to be $23,500 and $28,000 in February. All purchases are paid 30% in the month of purchase and 70% the following month. C. Salaries and sales commissions are also paid half in the month earned, and half the next month. Actual salaries were $8,000 in December. Budgeted salaries in January are $7,000, and February budgeted salaries are $10,500. Sales commissions each month are 8% of that month's sales. D. Rent expense is $4,300 per month. E. Depreciation is $2,800 per month. F. Estimated income tax payments are made at the end of January. The estimated tax payment is projected to be $7,000. G. The cash balance at the end of the prior year was $20,000. Required: 1. Prepare the schedules specified below. Show amounts for each month, and totals for January and February: a. Budgeted cash collections. 3 POINTS b. Budgeted cash payments for purchases. 3 POINTS c. Budgeted cash payments for operating expenses. (Hint: Operating expenses consist of salaries, sales commissions, rent expense, and depreciation). 3 POINTS 2. Prepare a combined cash budget for the months of January and February. If no financing activity took place, what is the budgeted cash balance on February 28? 11 POINTS