7.

Windsor Company prepares monthly cash budgets. Relevant data from operating budgets for 2023 are as follows: All sales are on account. Windsor expects collections to be 50% in the month of sale, 40% in the first month following the sale, and 10% in the second month following the sale. It pays 30% of direct materials purchases in cash in the month of purchase and the balance due in the month following the purchase. Other data are as follows: 1. Credit sales: November 2022,$200,000; December 2022,$281,000 2. Purchases of direct materials: December 2022$90.000 Other data are as follows: 1. Credit sales: November 2022,$200,000; December 2022,$281,000 2. Purchases of direct materials: December 2022,$90,000 3. Other receipts: January-collection of December 31,2022 , notes receivable $6,000; February-proceeds from sale of securities $7,000 4. Other disbursements: February-payment of $20,000 for land The company expects its cash balance on January 1,2023, to be $51,000. It wants to maintain a minimum cash balance of $41,000