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Paddu Company's budgeted sales and direct materials purchases follow. January was the first month of...

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Accounting

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Paddu Company's budgeted sales and direct materials purchases follow. January was the first month of operations. Budgeted sales: January $138,800; February $190,800; March $251,600 Budgeted direct materials purchases: January $39,700; February $34,900; March $40,100 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. 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 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 $ TA $ $ Total payments

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