Solid State sells electronic products. The controller is responsible for preparing the master budget and has accumulated the information below for the months of January, February, and March. Balances at January 1 are expected to be as follows:
Cash..................................$ 5,500
Inventories........................$309,400
Accounts receivable...............416,100
Accounts payable..................133,055
The budget is to be based on the following assumptions:
1. Each month's sales are billed on the last day of the month.
2. Customers are allowed a 3% discount if their payment is made within 10 days after the billing date. Receivables are booked at gross.
3. The company collects 60% of the billings within the discount period, 25% by the end of the month after the date of sale, and 9% by the end of the second month after the date of sale; 6% prove uncollectible.
4. It pays 54% of all material purchases and the selling, general, and administrative expenses in the month purchased and the remainder in the following month. Each month's units of ending inventory are equal to 130% of the next month's units of sales.
5. The cost of each unit of inventory is $20.
6. Selling, general, and administrative expenses, of which $2,000 is for depreciation, are equal to 15% of the current month's sales.
7. Actual and projected sales are as follows:

Instructions
(a) Calculate the budgeted cash disbursements during the month of February.
(b) Calculate the budgeted cash collections during the month of January.
(c) Calculate the budgeted number of units of inventory to be purchased during the month of March.

Month November December January February March April Sales $354,000 363,000 357,000 342,000 360,000 366,000 Units 11,800 12,100 11,900 11,400 12,000 12,200