a. Prepare a schedule of expected collections for January, February, and March. b. Prepare a schedule...

  

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a. Prepare a schedule of expected collections for January, February, and March. b. Prepare a schedule of expected payments for direct materials for January, February and March. Budgeted sales: January $138,800; February $190,800; March $251,600 Budgeted direct materials purchases: January $39,700; February $34,900; March $40,100 Ivanhoe'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. Ivanhoe'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. a. Prepare a schedule of expected collections for January, February, and March. b. Prepare a schedule of expected payments for direct materials for January, February and March. Budgeted sales: January $138,800; February $190,800; March $251,600 Budgeted direct materials purchases: January $39,700; February $34,900; March $40,100 Ivanhoe'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. Ivanhoe'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.