S22-10 Preparing a financial budget-schedule of cash payments Barnes Company budgeted direct materials purchases of $191,990 in January and $138,610 in February. Assume Barnes pays for direct materials purchases 60 % in the month of purchase and 40% in the month after purchase. The Accounts Payable balance on January 1 is $75,000. Prepare a schedule of cash payments for purchases for January and February. Round to the nearest dollar. SOLUTION Schedule of Cash Payment for Purchases February Total January Total direct materials purchases January February Cash Payments Direct Materials: Accounts Payable balance, January 1 January-Direct materials purchases (60%) January-Direct materials purchases (40%) February-Direct materials purchases (60%) Total payments for direct materials Accounts Payable balance, February 28: $ of February's direct materials purchases)