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Paddu Companys budgeted sales and direct materials purchases follow. January was the first month of...

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Accounting

Paddu Companys budgeted sales and direct materials purchases follow. January was the first month of operations.

Budgeted sales:
January $138,900; February $189,900; March $249,400
Budgeted direct materials purchases:
January $40,100; February $34,800; March $39,900
Paddus sales are 35% cash and 65% credit. It collects credit sales 40% in the month of sale, 60% in the month following the sale.
Paddus 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.

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Prepare a schedule of expected collections for January, February, and March. Paddu Company Expected Collections January February March Collections: $ $ $ Cash sales Collections of credit sales: January sales February sales March sales $ $ $ Total collections Prepare a schedule of expected payments for direct materials for January, February and March. Paddu Company Expected Payments January February March Payments: $ $ $ Cash purchases Payment of credit purchases: January purchases February purchases March purchases $ $ $ Total payments

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