Scott's Manufacturing is preparing its cash budgets for the first two months of the upcoming year. The following information concerns the compariy's upcoming cash receipts and cash disbursements. (Click the icon to view the cash receipts and cash disbursements,) Requirements 1. Prepare schedules of (a) budgeled cash collections, (b) budgetod cash payments for purchases, and (c) budgeted cash payments for operating expensed. Show amounts for each month and fotals for danuary and February. 2. Prepare a combined cash budoet. If no financing activity took place, what is the budgoted cash balince on February 28 ? Cash receipts and cash disbursements a. Sales are 60% cash and 40% credit. Credit sales are collected 35% in the month of sale and the remainder in the month after sale. Actual sales in December were $53,000. Schedules of budgeted sales for the two months of the upcoming year are as follows: b. Actual purchases of direct materials in December were $26,500. Scott's purchases of direct materials in January are budgeted to be $23,000 and $23,500 in February. All purchases are paid 25% in the month of purchase and 75% the following month. c. Salaries and sales commissions are paid half in the month earned and half the next month. Actual salaries were $9,500 in December. Budgeted salaries in January are $10,500, and February budgeted salaries are $12,500. Sales commissions each month are 10% of that month's sales. d. Rent expense is $4,500 per month. e. Depreciation is $2,700 per month. f. Estimated income tax payments are made at the end of January. The estimated tax payment is projected to be $14,000. g. The cash balance at the end of the prior year was $22,000. Requirement 1a. Prepare a schedule of budgeted cash collections for January and February. Show amounts for each month and totals for Jantary and February. \begin{tabular}{l||c||c|} \multicolumn{3}{l|}{ Cash Collections Budget } \\ \hline & January & February \\ \hline Cash sales & & \\ Credit sales & & \\ \hline Total cash collections & & \\ \hline \end{tabular} b. Prepare a schedule of budgeted cash payments for purchases for January and February. Show amounts for each month and totals for January and February (Leave any unused cells blank.) c. Prepare a schedule of budgeted cash payments for operating expenses for January and Fobruary. Show amounts for each month and totais for Jantiary and February. (Leave any unused cells blank.) Variable cash operating expenses: Sales commissions: December Sales commissions: January Sales commissions: February Total variable cash operating expenses Fixed cash operating expenses: Sales salaries: December Sales salaries: January Sales salaries: February Rent expense Total fixed cash operating expenses Total cash payments for operating expenses Requirement 2. Prepare a combined cash budget. If no financing activity took place, what is the budgeted cash balance on February 28 ? Complete the combined cash budget for January and February. (Leave any unused cells blank.) Direct materials purchases Operating expenses Tax payment Total cash payments Ending cash balance