Question 2 (part 1 of 2) The Dudley Merchandising Company has planned the following sales for the next three months January February Budgeted Sales March $40.000 $50.000 $70.000 Sales are made 20% in cash and 80% on account. From experience, the company has learned that a month's sales on account are collected according to the following pattern: Month of sale: 60% First month following sale: 30% Second month following sale: 8% Uncollectible: 2% Additional information is presented below: February purchases of merchandise inventory $15,000 March purchases of merchandise inventory $28,000 Monthly operating expenses, including $5,000 depreciation; cash $45,000 affecting expenses are fully paid in the month incurred. $21,000 Equipment purchases in March Dudley pays 70% of its inventory purchases in the month of purchase, the rest in the following month of f purchase and the balance in the first