1. Cotler Company
Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. 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. Sixty 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 $1,100 of depreciation per month. Other data: 1. Credit sales: November 2019,$275,000; December 2019,$352,000. 2. Purchases of direct materials: December 2019,$110,000. 3. Other receipts: January-Collection of December 31,2019 , notes receivable $16,500; February-Proceeds from sale of securities $6,600. 4. Other disbursements: February-Payment of $6,600 cash dividend. The company's cash balance on January 1,2020 , is expected to be $66,000. The company wants to maintain a minimum cash balance of $55,000. Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February. Prepare a cash budget for January and February in columnar form. P Question 2 of 4\langle angle Prepare a cash budget for January and February in columnar form. Cash Budget \begin{tabular}{|l|} \hline \\ \hline Excess (Deficiency) of Available Cash Over Cash Disbursements \\ Borrowings \\ Sale of Securities \\ Ending Cash Balance \\ Direct Labor \\ Manufacturing Overhead \\ Total Receipts \\ Selling and Administrative Expenses \\ Collections from Customers \\ Total Available Cash \\ Notes Receivable \\ Beginning Cash Balance \\ Total Disbursements \\ Cash Dividend \\ Receipts \\ Disbursements \\ Direct Materials \\ Financing \\ Repayments \end{tabular} Prepare a cash budget for January and February in columnar form. COLTER COMPANY Cash Budget \begin{tabular}{|l|} \hline \\ \hline Notes Receivable \\ Total Available Cash \\ Receipts \\ Ending Cash Balance \\ Direct Materials \\ Collections from Customers \\ Financing \\ Total Receipts \\ Manufacturing Overhead \\ Total Disbursements \\ Direct Labor \\ Disbursements \\ Sale of Securities \\ Beginning Cash Balance \\ Cash Dividend \\ Repayments \\ Borrowings \\ Selling and Administrative Expenses \\ Excess (Deficiency) of Available Cash Over Cash Disbursements \end{tabular} Prepare a cash budget for January and February in columnar form. COLTER COMPANY Cash Budget Repayments Beginning Cash Balance Borrowings Receipts Cash Dividend Collections from Customers Selling and Administrative Expenses Total Available Cash Ending Cash Balance Direct Labor Notes Receivable Disbursements Manufacturing Overhead Total Disbursements Direct Materials Total Receipts Excess (Deficiency) of Available Cash Over Cash Disbursements Sale of Securities Financing Prepare a cash budget for January and February in columnar form. COLTER COMPANY Cash Budget Sale of Securities Ending Cash Balance Financing Total Disbursements Beginning Cash Balance Notes Receivable Direct Labor Borrowings Repayments Excess (Deficiency) of Available Cash Over Cash Disbursements Sellingand Administrative Expenses Manufacturing Overhead Collections from Customers Receipts Disbursements Total Receipts Total Available Cash Cash Dividend Direct Materials Prepare a cash budget for January and February in columnar form. COLTER COMPANY Cash Budget Beginning Cash Balance Disbursements Receipts Total Receipts Ending Cash Balance Total Disbursements Collections from Customers Excess (Deficiency) of Available Cash Over Cash Disbursements Financing Borrowings Total Available Cash Cash Dividend Repayments Sellingand Administrative Expenses Direct Labor Notes Receivable Sale of Securities Manufacturing Overhead Direct Materials \begin{tabular}{|l|l|} \hline \multicolumn{1}{l|}{ Less } & Beginning Cash Balance \\ Financing \\ Repayments \\ Sale of Securities \\ Cash Dividend \\ Ending Cash Balance \\ Selling and Administrative Expenses \\ Excess (Deficiency) of Available Cash Over Cash Disbursements \\ Direct Materials \\ Total Available Cash \\ Disbursements \\ Direct Labor \\ Total Disbursements \\ Collections from Customers \\ Total Receipts \\ Borrowings \\ Manufacturing Overhead \\ Notes Receivable \\ Receipts \end{tabular} \begin{tabular}{l} Manufacturing Overhead \\ Borrowings \\ Repayments \\ Total Disbursements \\ Collections from Customers \\ Total Receipts \\ Receipts \\ Excess (Deficiency) of Available Cash Over Cash Disbursements \\ Cash Dividend \\ Total Available Cash \\ Direct Materials \\ Sellingand Administrative Expenses \\ Financing \\ Sale of Securities \\ Disbursements \\ Direct Labor \\ Ending Cash Balance \\ Beginning Cash Balance \\ Notes Receivable \\ \hline \end{tabular} Excess (Deficiency) of Available Cash Over Cash Disbursements Repayments Ending Cash Balance Total Receipts Notes Receivable Sellingand Administrative Expenses Borrowings Cash Dividend Beginning Cash Balance Collections from Customers Direct Labor Sale of Securities Total Disbursements Receipts Financing Disbursements Direct Materials Total Available Cash Manufacturing Overhead Total Disbursements Total Receipts Borrowings Manufacturing Overhead Beginning Cash Balance Direct Labor Total Available Cash Notes Receivable Ending Cash Balance Collections from Customers Excess (Deficiency) of Available Cash Over Cash Disbursements Financing Receipts Sellingand Administrative Expenses Direct Materials Sale of Securities Disbursements Repayments Cash Dividend \begin{tabular}{|l|} \hline \\ \hline Total Available Cash \\ Direct Materials \\ Direct Labor \\ Sale of Securities \\ Receipts \\ Notes Receivable \\ Total Receipts \\ Total Disbursements \\ Beginning Cash Balance \\ Financing \\ Ending Cash Balance \\ Repayments \\ Excess (Deficiency) of Available Cash Over Cash Disbursements \\ Collections from Customers \\ Selling and Administrative Expenses \\ Cash Dividend \\ Disbursements \\ Manufacturing Overhead \\ Borrowings \\ \hline \end{tabular} $4 \begin{tabular}{|l|l|} \hline \multicolumn{1}{|l|}{ Add Less } & Excess (Deficiency) of Available Cash Over Cash Disbursements \\ \hline & Direct Materials \\ & Notes Receivable \\ & Cash Dividend \\ Beginning Cash Balance \\ & Ending Cash Balance \\ Repayments \\ & Total Disbursements \\ & Borrowings \\ & Selling and Administrative Expenses \\ & Manufacturing Overhead \\ eTextbook ar & Direct Labor \\ & Collections from Customers \\ & Financing \\ Receipts \\ Total Receipts \\ Total Available Cash \\ & Disbursements \\ & Sale of Securities \end{tabular} Question 2 of 4> /14 Question 2 of 4> /14 eTextbook and Media Save for Later Attempts: 0 of 3 used Submit
