Requirements 1. Prepare the schedule of cash receipts from customers for January and February 2024. Assume cash receipts are 80% in the month of the sale and 20% in the month following the sale. 2. Prepare the schedule of cash payments for purchases for January and February 2024. Assume purchases are paid 70% in the month of purchase and 30% in the month following the purchase. 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 60% in the month incurred and 40% in the following month. Rent and income tax expenses are paid as incurred. Insurance expense is an expiration of the prepaid amount. 4. Prepare the cash budget for January and February 2024. Assume no financing took place C Print Done - Data Table $ December 31, 2023, account balances: Cash Accounts Receivable Merchandise Inventory Accounts Payable Salaries and Commissions Payable Budgeted amounts for 2024: Sales, all on account Purchases, all on account Commissions Expense Salaries Expense Rent Expense Depreciation Expense Insurance Expense Income Tax Expense 35,000 15,000 16,000 15,000 2,800 January February $ 85,000 $ 85,300 40,300 42,000 4,250 4,265 5,000 5,000 2,200 2,200 800 800 200 200 2,000 2,000 Print Done Requirement 1. Prepare the schedule of cash receipts from customers for January and February 2024. Assume cash receipts are 80% in the month of the sale and 20% in the month following the sale. Watercooler Company Budgeted Cash Receipts from Customers Two Months Ended February 28, 2024 January February 68240 Current month sales, 80% 68000 15000 17000 Prior month sales, 20% Total cash receipts 83000 85240 Requirement 2. Prepare the schedule of cash payments for purchases for January and February 2024. Assume purchases are paid 70% in the month of purchase and 30% in the month following the purchase. Watercooler Company Budgeted Cash Payments for Purchases Two Months Ended February 28, 2024 January February 30% of last month's purchases 12090 12600 70% of current month's purchases 28210 29400 Total cash payments for purchases 40300 42000 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 60% in the month incurred and 40% 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.) Watercooler Company Budgeted Cash Payments for Selling and Administrative Expenses Two Months Ended February 28, 2024 January February Variable expenses: 40% of last month's Commission Expense 1700 1706 2550 2559 60% of current month's Commission Expense Total payments for variable expenses 4250 4265 Fixed expenses 40% of last month's Salaries Expense 2000 60% of current month's Salaries Expense 3000 3000 2200 Rent expense 2000 2000 Total payments for fixed expenses 2200 Total payments for S and A expenses Requirement 4. Prepare the cash budget for January and February 2024. Assume no financing took place. Watercooler Company Cash Budget Two Months Ended February 28, 2024 January February Beginning cash balance 35000 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