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

administrative expenses that include $$1,200$ of depreciation per month.

Other data:

Credit sales: November $2021,$ $$300,000$; December $2021,$ $$384,000$

Purchases of direct materials: December $2021,$$$120,000.$

Other receipts: January$-$Collection of December $31,2021,$ notes receivable $$18,000$;

February$-$Proceeds from sale of securities $$7,200.$

Other disbursements: February$-$Payment of $$7,200$ cash dividend.

The company's cash balance on January $1,2022,$ is expected to be $$72,000.$ The company wants to maintain a minimum cash balance

of $$60,000.$

Prepare schedules for $(1)$ expected collections from customers and $(2)$ expected payments for direct materials purchases for

January and February.

December

January

February

Total payments

eTextbook and Media

Prepare a cash budget for January and February in columnar form.

$

$$$

anuary

$

$