Requirement 1. Prepare the schedule of cash receipts from customers for January and February 2024.

Assume cash receipts are 70% in the month of the sale and 30% in the month following the sale.

Omaha Company

Budgeted Cash Receipts from Customers

Two Months Ended February 28, 2024

	January
Current month sales, 70%
Prior month sales, 30%
Total cash receipts

February

Requirement 2. Prepare the schedule of cash payments for purchases for January and February 2024.

Assume purchases are paid 30% in the month of purchase and 70% in the month following the purchase.

Omaha Company

Budgeted Cash Payments for Purchases

Two Months Ended February 28, 2024

	January
70% of last month's purchases
30% of current month's purchases
Total cash payments for purchases

February

Requirement 3. Prepare the schedule of cash payments for selling and administrative expenses for January and February 2024.

Assume 40% of the accrual for Salaries and Commissions Payable is for commissions and 60% is for salaries. The December 31 balance will be paid in January. Salaries and commissions are paid 70% in the month incurred and 30% in the following month. Rent and income tax expenses are paid as incurred. Insurance expense is an expiration of the prepaid amount. (Round your answers to the nearest whole number.)

Omaha Company
Budgeted Cash Payments for Selling and Administrative Expenses
Two Months Ended February 28, 2024
		January	February
	Variable expenses:
	30% of last month's Commission Expense
	70% of current month's Commission Expense
	Total payments for variable expenses
	Fixed expenses
	30% of last month's Salaries Expense
	70% of current month's Salaries Expense
	Rent expense
	Total payments for fixed expenses
	Total payments for S and A expenses

Requirement 4. Prepare the cash budget for January and February 2024.

Assume no financing took place.

Omaha Company

Cash Budget

Two Months Ended February 28, 2024

	January	February
Beginning cash balance
Cash receipts from customers
Cash available
Cash payments:
Purchases of merchandise inventory
Selling and administrative expenses
Payments for income taxes
Total cash payments
Ending cash balance

December 31, 2023, account balances:

Cash

$28,000

Accounts Receivable

18,000

Merchandise Inventory

23,000

Accounts Payable

13,000

Salaries and Commissions Payable

2,650

Budgeted amounts for 2024:

January

February

Sales, all on account

$80,000

$85,300

Purchases, all on account

40,800

41,100

Commissions Expense

4,000

4,265

Salaries Expense

4,000

4,000

Rent Expense

3,200

3,200

Depreciation Expense

800

800

Insurance Expense

100

100

Income Tax Expense

1,600

1,600