BrambleCompany prepares monthly cash budgets. Relevant data from operating budgets for 2023 are as follows:

January

February

Sales

$351,000

$400,000

Direct materials purchases

119,000

109,000Direct labour

84,000113,000Manufacturing overhead

59,00074,000Selling and administrative expenses

76,00081,000

All sales are on account.Brambleexpects 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, $89,0003.Other receipts: Januarycollection of December 31, 2022, notes receivable $4,000; Februaryproceeds from sale of securities $5,000

4.Other disbursements: Februarypayment of $20,000for land

The company expects its cash balance on January 1, 2023, to be $51,000. It wants to maintain a minimum cash balance of $40,000.

Prepare schedules for

(1) the expected collections from customers.

Month

January

February

November

$

enter a dollar amount

$

enter a dollar amount

December

enter a dollar amount

enter a dollar amount

January

enter a dollar amount

enter a dollar amount

February

enter a dollar amount

enter a dollar amount

$

enter a total amount

$

enter a total amount

(2) the expected payments for direct materials purchases.

Month

January

February

December

$

enter a dollar amount

$

enter a dollar amount

January

enter a dollar amount

enter a dollar amount

February

enter a dollar amount

enter a dollar amount

$

enter a total amount

$

enter a total amount

Prepare a cash budget for January and February using columns for each month.

LORCH COMPANY

Cash Budget

For the Two Months Ending February 28, 2021

Jan

Feb

Total

select an opening cash budget item

Total available cash

Selling and administrative expenses

Total financing

Collection of notes receivable

Direct materials

Proceeds from sale of securities

Beginning cash balance

Total disbursements

Financing

Purchase of land

Manufacturing overhead

Interest expenses

Disbursements

Excess of cash available over cash disbursements

Repayment

Collection from credit sales

Direct labour

Total receipts

Cash receipts

Ending cash balance

Borrowing

$

enter a dollar amount

$

enter a dollar amount

$

enter a dollar amount

select between addition and deduction

Add

Less

:

select an opening name for section one

Collection of notes receivable

Cash receipts

Proceeds from sale of securities

Total available cash

Ending cash balance

Direct labour

Total disbursements

Collection from credit sales

Purchase of land

Total receipts

Financing

Selling and administrative expenses

Total financing

Excess of cash available over cash disbursements

Repayment

Interest expenses

Direct materials

Manufacturing overhead

Beginning cash balance

Disbursements

Borrowing

select a cash budget item

Interest expenses

Borrowing

Ending cash balance

Total receipts

Collection from credit sales

Total available cash

Total financing

Proceeds from sale of securities

Selling and administrative expenses

Manufacturing overhead

Direct materials

Purchase of land

Excess of cash available over cash disbursements

Cash receipts

Disbursements

Collection of notes receivable

Beginning cash balance

Total disbursements

Financing

Direct labour

Repayment

enter a dollar amount

enter a dollar amount

enter a dollar amount

select a cash budget item

Total available cash

Repayment

Manufacturing overhead

Total financing

Ending cash balance

Selling and administrative expenses

Collection from credit sales

Direct labour

Direct materials

Proceeds from sale of securities

Interest expenses

Total receipts

Cash receipts

Collection of notes receivable

Financing

Purchase of land

Total disbursements

Excess of cash available over cash disbursements

Borrowing

Disbursements

Beginning cash balance

enter a dollar amount

enter a dollar amount

enter a dollar amount

select a cash budget item

Borrowing

Interest expenses

Total financing

Total available cash

Manufacturing overhead

Selling and administrative expenses

Cash receipts

Direct labour

Direct materials

Financing

Collection from credit sales

Purchase of land

Beginning cash balance

Collection of notes receivable

Total receipts

Excess of cash available over cash disbursements

Repayment

Disbursements

Proceeds from sale of securities

Total disbursements

Ending cash balance

enter a dollar amount

enter a dollar amount

enter a dollar amount

select a closing name for section one

Financing

Total receipts

Repayment

Direct labour

Direct materials

Collection of notes receivable

Beginning cash balance

Total financing

Ending cash balance

Collection from credit sales

Manufacturing overhead

Interest expenses

Selling and administrative expenses

Proceeds from sale of securities

Disbursements

Total disbursements

Borrowing

Cash receipts

Purchase of land

Excess of cash available over cash disbursements

Total available cash

enter a total amount for section one

enter a total amount for section one

enter a total amount for section one

select a summarizing line for the first part

Disbursements

Ending cash balance

Total financing

Excess of cash available over cash disbursements

Interest expenses

Proceeds from sale of securities

Collection from credit sales

Selling and administrative expenses

Beginning cash balance

Total receipts

Borrowing

Collection of notes receivable

Total disbursements

Financing

Manufacturing overhead

Total available cash

Cash receipts

Purchase of land

Direct labour

Repayment

Direct materials

enter a total amount for the first part

enter a total amount for the first part

enter a total amount for the first part

select between addition and deduction

Add

Less

:

select an opening name for section two

Total receipts

Purchase of land

Financing

Direct labour

Total financing

Repayment

Selling and administrative expenses

Total disbursements

Beginning cash balance

Collection of notes receivable

Excess of cash available over cash disbursements

Interest expenses

Total available cash

Disbursements

Ending cash balance

Cash receipts

Proceeds from sale of securities

Direct materials

Borrowing

Manufacturing overhead

Collection from credit sales

select a cash budget item

Manufacturing overhead

Beginning cash balance

Collection from credit sales

Excess of cash available over cash disbursements

Total financing

Direct materials

Total available cash

Direct labour

Disbursements

Total receipts

Cash receipts

Repayment

Ending cash balance

Purchase of land

Total disbursements

Borrowing

Interest expenses

Selling and administrative expenses

Financing

Collection of notes receivable

Proceeds from sale of securities

enter a dollar amount

enter a dollar amount

enter a dollar amount

select a cash budget item

Financing

Selling and administrative expenses

Ending cash balance

Excess of cash available over cash disbursements

Purchase of land

Direct labour

Manufacturing overhead

Borrowing

Total receipts

Disbursements

Total disbursements

Beginning cash balance

Collection of notes receivable

Proceeds from sale of securities

Total financing

Repayment

Collection from credit sales

Cash receipts

Interest expenses

Direct materials

Total available cash

enter a dollar amount

enter a dollar amount

enter a dollar amount

select a cash budget item

Direct materials

Proceeds from the sale of securities

Manufacturing overhead

Ending cash balance

Collection of notes receivable

Borrowing

Selling and administrative expenses

Purchase of land

Cash receipts

Repayment

Collection from credit sales

Disbursements

Beginning cash balance

Interest expenses

Total available cash

Excess of cash available over cash disbursements

Total disbursements

Direct labour

Total financing

Total receipts

Financing

enter a dollar amount

enter a dollar amount

enter a dollar amount

select a cash budget item

Purchase of land

Total available cash

Financing

Beginning cash balance

Excess of cash available over cash disbursements

Disbursements

Cash receipts

Direct labour

Borrowing

Repayment

Total disbursements

Direct materials

Total financing

Interest expenses

Collection of notes receivable

Selling and administrative expenses

Collection from credit sales

Manufacturing overhead

Proceeds from sale of securities

Total receipts

Ending cash balance

enter a dollar amount

enter a dollar amount

enter a dollar amount

select a cash budget item

Financing

Interest expenses

Manufacturing overhead

Cash receipts

Borrowing

Total disbursements

Direct labour

Selling and administrative expenses

Proceeds from sale of securities

Repayment

Total receipts

Purchase of land

Collection from credit sales

Beginning cash balance

Excess of cash available over cash disbursements

Disbursements

Direct materials

Total available cash

Ending cash balance

Collection of notes receivable

Total financing

enter a dollar amount

enter a dollar amount

enter a dollar amount

select a closing name for section two

Total available cash

Collection from credit sales

Ending cash balance

Borrowing

Repayment

Direct labour

Financing

Selling and administrative expenses

Cash receipts

Total disbursements

Total receipts

Collection of notes receivable

Excess of cash available over cash disbursements

Proceeds from sale of securities

Beginning cash balance

Interest expenses

Total financing

Purchase of land

Disbursements

Direct materials

Manufacturing overhead

enter a total amount for section two

enter a total amount for section two

enter a total amount for section two

select a summarizing line for the second part

Direct materials

Total receipts

Financing

Collection of notes receivable

Repayment

Ending cash balance

Collection from credit sales

Total financing

Total disbursements

Interest expenses

Direct labour

Manufacturing overhead

Beginning cash balance

Total available cash

Disbursements

Excess of cash available over cash disbursements

Cash receipts

Proceeds from sale of securities

Borrowing

Selling and administrative expenses

Purchase of land

enter a total amount for the second part

enter a total amount for the second part

enter a total amount for the second part

select an opening name for section three

Repayment

Excess of cash available over cash disbursements

Total disbursements

Total available cash

Financing

Interest expenses

Selling and administrative expenses

Direct labour

Disbursements

Borrowing

Beginning cash balance

Purchase of land

Collection of notes receivable

Collection from credit sales

Manufacturing overhead

Total financing

Direct materials

Ending cash balance

Proceeds from sale of securities

Total receipts

Cash receipts

:select a cash budget item

Borrowing

Direct materials

Interest expenses

Collection from credit sales

Repayment

Beginning cash balance

Excess of cash available over cash disbursements

Collection of notes receivable

Cash receipts

Ending cash balance

Disbursements

Total available cash

Total financing

Total disbursements

Financing

Manufacturing overhead

Proceeds from sale of securities

Direct labour

Purchase of land

Selling and administrative expenses

Total receipts

enter a dollar amount

enter a dollar amount

enter a dollar amount

select between addition and deduction

Add

Less

:

select a cash budget item

Collection from credit sales

Total receipts

Direct materials

Total available cash

Interest expenses

Total financing

Cash receipts

Repayment

Beginning cash balance

Selling and administrative expenses

Borrowing

Proceeds from sale of securities

Direct labour

Collection of notes receivable

Manufacturing overhead

Purchase of land

Total disbursements

Excess of cash available over cash disbursements

Financing

Ending cash balance

Disbursements

enter a dollar amount

enter a dollar amount

enter a dollar amount

select between addition and deduction

Add

Less

:

select a cash budget item

Collection of notes receivable

Manufacturing overhead

Purchase of land

Direct labour

Disbursements

Total receipts

Beginning cash balance

Proceeds from sale of securities

Total available cash

Direct materials

Excess of cash available over cash disbursements

Repayment

Collection from credit sales

Ending cash balance

Total financing

Total disbursements

Borrowing

Financing

Cash receipts

Interest expenses

Selling and administrative expenses

enter a dollar amount

enter a dollar amount

enter a dollar amount

select a closing name for section three

Proceeds from sale of securities

Purchase of land

Total available cash

Disbursements

Direct materials

Collection from credit sales

Selling and administrative expenses

Excess of cash available over cash disbursements

Beginning cash balance

Total disbursements

Ending cash balance

Borrowing

Repayment

Interest expenses

Cash receipts

Direct labour

Financing

Manufacturing overhead

Total receipts

Total financing

Collection of notes receivable

enter a total amount for section three

enter a total amount for section three

enter a total amount for section three

select a closing cash budget item

Borrowing

Selling and administrative expenses

Repayment

Total receipts

Disbursements

Financing

Direct labour

Cash receipts

Proceeds from sale of securities

Ending cash balance

Purchase of land

Total available cash

Total financing

Beginning cash balance

Collection of notes receivable

Excess of cash available over cash disbursements

Direct materials

Collection from credit sales

Manufacturing overhead

Total disbursements

Interest expenses

$

enter a total amount for the cash budget

$

enter a total amount for the cash budget

$

enter a total amount for the cash budget