goods sold computations. P9-61A Cash budgets (Learning Objective 3) Eli's Restaurant Supply is preparing its cash budgets for the first two months of the upcoming year. Here is the information about the company's upcoming cash receipts and cash disbursements: a. Sales are 65% cash and 35% credit. Credit sales are collected 20% in the month of sale and the remainder in the month after sale. Actual sales in December were $54,000. Schedules of budgeted sales for the two months of the upcoming year are as follows: January . February .................. ..... ............. Budgeted Sales Revenue $62,000 $70,000 b. Actual purchases of direct materials in December were $24,500. The company's purchases of direct materials in January are budgeted to be $24,000 and $26,000 in February. All purchases are paid 40% in the month of purchase and 60% the following month. c. Salaries and sales commissions are also paid half in the month earned and half the next month. Actual salaries were $8,000 in December. Budgeted salaries in Janu- ary are $9,000 and February budgeted salaries are $10,500. Sales commissions each month are 8% of that month's sales. d. Rent expense is $3,500 per month. e. Depreciation is $2,100 per month. f. Estimated income tax payments are made at the end of January. The estimated tax payment is projected to be $12,500. g. The cash balance at the end of the prior year was $22,000. Requirements 1. Prepare schedules of (a) budgeted cash collections, (b) budgeted cash payments for purchases, and (c) budgeted cash payments for operating expenses. Show totals for each month and totals for January and February combined. 2. Prepare a combined cash budget similar to exhibits in the chapter. If no financing ac. tivity takes place, what is the budgeted cash balance on February 28