P9-61 A Cash budgets (Learning Objective 3) of the Eli's Restaurant Supply is preparing its cash budgets for the first two months upcoming year. Here is the information about the company's upcuming cash and cash disbursements: a. Sales are 65% cash and 35% credit. Credit sales are collected 20% in the of sale and the remainder in the month after sale. Actual sales in Decem r were $54,000. Schedules of budgeted sales for the two months of the u as follows: Budgeted Sales Revenue January February $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. 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 eadh month are 8% of that month's sales. c. 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. each month and totals for January and February combined. Prepare a combined cash budget similar to exhibits in the chapter. If no fina tivity takes place, what is the budgeted cash balance on February 287 ow totals for 2. ac