Reference no: EM132203279

Allan Corporation has the following information:

• Allan Corporation has a sales budget for March of $440,000. About 10% are cash sales and the remainder is sold on account.
• The company expects that 60% of credit sales will be collected in the month of the sale, 25% in the next month and 10% in the following month.
• Materials purchased on account are expected to be $250,000. Allan pays 35% in the month of the purchase, 50% in the month following the purchase and the remaining 15% in the second month after the purchase.
• Salaries and wages of the workers are approximately $45,000 per month. The employees are paid weekly so on average 95% of their wages are paid in the month to which they relate and the remaining 5% is paid in the following month.
• Utilities average $4,300 per month.
• Rent on the building is $9,000 per month.
• Insurance is $3,000 per month and advertising costs are $1,000 per month.
• February sales were $320,000 and purchases of materials in February were $170,000;
• January sales were $200,000 and purchases of materials in January were $130,000.
• The cash balance on March 1st is $5,400.

Required:

A. a schedule of cash collections on accounts receivable for March.

B. a schedule of cash disbursements on accounts payable for March.