Roprin Corporation's sales of shoes on account. Past collection, history indicates that credit sales are collected as

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Question:

Roprin Corporation's sales of shoes on account. Past collection, history indicates that credit sales are collected as follows:

30% in the month of sale

60% in the month following sale

10% in the second month following sale

In January, sales were $42,000 and February sales were $45,000. Projected sales for March are 4,800 pares de zapatos at $10 each pair ($48,000). Projected sales for April are 5,000 zapatos at $12 each pair ($60,000). The cash balance at March 1, 2019 was $6,850.

Roprin expects to purchase $26,000 of materials in February and $28,000 of materials in March. Three-quarters (75%) of all purchases are paid for in the month of purchase, and the other one-fourth (25%) is paid for in the month following the month of purchase. All other fixed expenses are $8,000 per month and are paid in the month incurred.

Financial Section (borrowings and/or payments are not considered.

Instructions:

A. Prepare the cash collections and cash payments schedules for March 2019.

B. Prepare a cash budget for the month ended 31 March 2019.