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Question 12 Nieto Company's budgeted sales and direct materials purchases are as follows. January February March Budgeted Sales $276,000 237,500 261,400 Budgeted D.M. Purchases $33,200 39,600 53,100 Nieto's sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Nieto's purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase. (a) Prepare a schedule of expected collections from customers for March. NIETO COMPANY Expected Collections from Customers March March cash sales Collection of March credit sales Collection of February credit sales Collection of January credit sales Total collections b) Prepare a schedule of expected payments for direct materials for March NIETO COMPANY Expected Collections from Customers March March cash sales Collection of March credit sales Collection of February credit sales Collection of January credit sales Total collections (b) Prepare a schedule of expected payments for direct materials for March. NIETO COMPANY Expected Payments for Direct Materials March March cash purchases Payment of March credit purchases Payment of February credit purchases Total payments $

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