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Knobbles Company's budget committee provides the following information:
- Prepare the schedule of cash receipts from customers for January and February 2016. Assume cash receipts are 60% in the month of the sale and 40% in the month following the sale.
- Prepare the schedule of cash payments for purchases for January and February 2016. Assume purchases are paid 60% in the month of purchase and 40% in the month following the purchase.
- Prepare the schedule of cash payments for selling and administrative expenses for January and February 2016. Assume 25% of the accrual for Salaries and Commissions Payable is for commissions and 75% is for salaries. The D ecember 31 balance will be paid in January. Salaries and commissions are paid 70% in the month incurred and 30% in the following month. Rent and income tax expenses are paid as incurred. Insurance expense is an expiration of the prepaid amount. 4 . Prepare the cash budget for January and February 2016. Assume no financing took place.
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