Paddu Company's budgeted sales and direct materials purchases follow. January was the first month of operations. Budgeted sales: January $139,800: February $189,600: March $251,300 Budgeted direct materials purchases: January $39,700; February $34,900; March $40,000 Paddu's sales are 35% cash and 65% credit. It collects credit sales 40% in the month of sale, 60% in the month following the sale. Paddu's purchases are 40% cash and 60% on account. It pays purchases on account 60% in the month of purchase, and 40% in the month following purchase. Prepare a schedule of expected collections for January February, and March Paddu Company Expected Collections February January March Collections $ S Cash sales Collections of credit sales: January sales February sales March sales $ $ Total collections $ Prepare a schedule of expected payments for direct materials for January, February and March Paddu Company Expected Payments February January March Payments Cash purchase Payment of credit purchases January purchases February purchases March purchases $ Total payments $