Question 3 of 16

Question 3 of 16 View Policies Current Attempt in Progress Paddu Company's budgeted sales and direct materials purchases follow. January was the first month of operations. Budgeted sales: January $141,200; February $188,100; March $252,300 Budgeted direct materials purchases: January $39,700; February $34,800; 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.