Question 17 (5 points) Sales for January, February and March are expected to be $200,000, $180,000 and $220,000 respectively for Cito Gaston Inc. All sales are on account, with terms 2/15, net 30, and are collected as follows: 50% in the month of the sale, and the remaining 50% in the month following the sale. One-half of all sales discounts are taken on the average. Materials are purchased one month before being needed in production. All purchases and expenses are paid for as incurred. Activities for the quarter are expected to be: March January $40,000 February $36,000 $68,000 Materials used $44,000 $72,000 $18,000 $70,000 $18,000 $36,000 Salaries $18,000 $36,000 $36,000 $14,000 $14,000 $14,000 Maintenance Depreciation Water and heat Dividends paid to shareholders Debt repayment on bonds Nil $10,000 Nil $8,000 $8,000 $8,000 Instructions Prepare a cash budget, showing inflows and outflows, for February. Question 17 (5 points) Sales for January, February and March are expected to be $200,000, $180,000 and $220,000 respectively for Cito Gaston Inc. All sales are on account, with terms 2/15, net 30, and are collected as follows: 50% in the month of the sale, and the remaining 50% in the month following the sale. One-half of all sales discounts are taken on the average. Materials are purchased one month before being needed in production. All purchases and expenses are paid for as incurred. Activities for the quarter are expected to be: February $36,000 $68,000 Materials used January $40,000 $70,000 $18,000 $36,000 March $44,000 $72,000 $18,000 $36,000 Salaries Maintenance $18,000 $36,000 $14,000 $14,000 $14,000 Depreciation Water and heat Dividends paid to shareholders Debt repayment on bonds Nil $10,000 Nil $8,000 $8,000 $8,000 Instructions Prepare a cash budget, showing inflows and outflows, for February