3.Sunland

Sunland Company prepares monthly cash budgets. Relevant data from operating budgets for 2022 are as follows February January $417.600 Sales $464.000 139,200 145.000 104.400 116,000 Direct materials purchases Direct labor Manufacturing overhead Selling and administrative expenses 81.200 87.000 91.640 98.600 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 $1,160 of depreciation per month Other data: 2 3 1 Credit sales: November 2021, 5290,000: December 2021.5371,200 Purchases of direct materials: December 2021,5116,000 Other receipts: January-Collection of December 31, 2021, notes receivable $17.400: February - Proceeds from sale of securities $6,960 4. Other disbursements: February-Payment of $6,960 cash dividend. The company's cash balance on January 1, 2022 is expected to be $69,600. The company wants to maintain a minimum cash balance of $58,000 Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February Expected Collections from Customers February November December January February Total collection Expected Payments for Direct Materials January February December January February LE Total payments $ Cool Budget $ A A A A A A A A