Question 14 of 22 View Policies -/8 E Current Attempt in Progress Ivanhoe Company's budgeted sales and direct materials purchases follow. January was the first month of operations. Budgeted sales: January $138,800; February $190,800; March $251,600 Budgeted direct materials purchases: January $39,700; February $34,900; March $40,100 Ivanhoe's sales are 35% cash and 65% credit. It collects credit sales 40% in the month of sale, 60% in the month following the sale. Ivanhoe's 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.