Question

dicements CALCULATOR PRINTER VERSION oblem 9-4A (Part Level Submission) (Video) biter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows January February $435,600 $484,000 Direct materials purchases 145,200 151,250 Direct labor 108,900 121,000 Manafacturing overhead 84,700 90,750 Selling and administrative expenses 95,590 102,850 Sales All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the first month following the sale, and 20% in the second month following the sale. Sexty percent (60%) of direct materials purchases are paid in cash in the month of purchase, and the balance due is paid in the month following the purchase. All other items above are paid in the month incurred except for selling and administrative expenses that include $1,210 of depreciation per month Other data 1. Credit sales: November 2019, $302,500; December 2019, 5387,200 2. Purchases of direct materials: December 2019, 5121,000 3. Other receipts: January-Collection of December 31, 2019, notes receivable $18,150, February-Proceeds from sale of securities $7,260 4. Other disbursements: February - Payment of $7,260 cash dividend. The company's cash balance on January 1, 2020, is expected to be $72,600. The company wants to maintain a minimum cash balance of $60,500 Your answer is correct Prepare schedules for (1) expected collections from customers and (2) expected payments for drest materials purchases for Sanuary and February Expected Collection from Customers

Answer 1

February Expected Collections from Customers January November 60500 December 116160 January 217800 February Total Collections 394460 77440 130680 24 2000 450120 February Expected Collections from Customers January December 48400 January 87120 February Total Payments 135520 58080 90 750 148830

COLTER COMPANY Cash Budget For the Two Months Ending Febraury 28, 2017 January February Beginning Cash Balance 7260060500 Add: Receipts Collections from Customers 394460 450120 Notes Receivables 18150 Sales of Securities 7260 Total Receipts 412610 457380 Total Available Cash 485210 517880 Less: Disbursements Direct Materials 135520 148830 Direct Labor 108900 121000 Manufacturing Overhead 84 700 90750 Selling and Administrative Expenses 95590 102850 Cash Dividends 7260 Total Disbursements 424710 470690 Excess (deficiency) of Available Cash 60500 47190 over Cash Disbursements Financing Add: Borrowing 13310 Less: Repayments Ending Cash Balance 6050060500