Preparing a financial budget—schedule of cash payments Jefferson Company has budgeted purchases of merchandise inventory of $457,500 in January and $533,250 in February. Assume Jefferson pays for...

Preparing a financial budget—schedule of cash payments

Jefferson Company has budgeted purchases of merchandise inventory of $457,500 in January and $533,250 in February. Assume Jefferson pays for inventory purchases 70% in the month of purchase and 30% in the month after purchase. The Accounts Payable balance on December 31 is $98,275. Prepare a schedule of cash payments for purchases for January and February.