Question: LRF Companys budgeted sales and direct materials purchases are as follows. LRFs sales are 30% cash and 70% credit. Credit sales are collected 10% in

LRF Company€™s budgeted sales and direct materials purchases are as follows.

LRF€™s sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. LRF€™s purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase.

Instructions
(a) Prepare a schedule of expected collections from customers for March.
(b) Prepare a schedule of expected payments for direct materials forMarch.

Budgeted Sales $200,000 220,000 270,000 Budgeted D.M. Purchases $30,000 36,000 40,000 January February March

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