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1. Prepare a sales budget, including a schedule of expected cash collections. 2. Prepare a direct materials budget, including a schedule of expected cash disbursements for purchases of materials. 3. Prepare a cash budget. Accounts Receivable Collections: \begin{tabular}{|l|r|} \hline Month of sale & 15% \\ \hline Month following sale & 60% \\ \hline Second month following sale & 22% \\ \hline Uncollectible & 3% \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline Accounts payable for inventory purchases, March 1 balance & $10,500 \\ \hline Budgeted inventory purchases in March & $23,500 \end{tabular} Inventory payments: \begin{tabular}{|c|c|} \hline Month of purchase & 60% \\ \hline Month following purchase & 40% \\ \hline tal budgeted selling \& administrative expenses & $12,500 \\ \hline Idgeted selling \& administrative depreciation in & $3,200 \\ \hline \end{tabular} \begin{tabular}{l|r|} \hline Other budgeted cash disbursements in March & $14,000 \\ \hline Equipment purchases & $2,000 \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline Minimum cash balance to be maintained & $10,000 \\ \hline March 1 cash balance & $11,500 \\ \hline March 1 outstanding borrowings & $0 \\ \hline March 1 interest due & $0 \\ \hline \end{tabular} Al Expected cash collections: \begin{tabular}{|l|l|l|l|l|l|} \hline 1 & Expected cash collections: \\ \hline 2 & March cash collections \\ \hline 3 & March collections on account: \\ \hline 4 & January sales \\ \hline 5 & February sales \\ \hline 6 & March sales \\ \hline 7 & Total cash collections \\ \hline 8 & \\ \hline 9 & Payments to suppliers: \\ \hline 10 & Accounts payable for inventory purchases, beginning balance \\ \hline 11 & March purchases \\ \hline 12 & Total cash payments \\ \hline 13 & \\ \hline 14 & \\ \hline 15 & \\ \hline 16 & \\ 17 & \\ \hline 18 & Cash balance, March 1 \\ \hline 19 & Add cash recipts: \\ \hline 20 & Collections from customers \\ \hline 21 & Total cash available & S \& P Enterprises \\ \hline 22 & Less disbursements: \\ \hline 23 & Payments to suppliers \\ \hline 24 & Selling and administrative expenses \\ \hline \end{tabular} Budget Data Schedules and Cash Budget

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