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

Beginning cash balance$

$

$

Add: Cash receipts

Purchase of land

Borrowing

Collection of notes receivable

Manufacturing overhead

Collection from credit sales

Repayment

Direct materials

Proceeds from sale of securities

Direct labour

Selling and administrative expenses

Interest expenses

Selling and administrative expenses

Proceeds from sale of securities

Direct materials

Direct labour

Manufacturing overhead

Interest expenses

Purchase of land

Repayment

Borrowing

Collection from credit sales

Collection of notes receivable

Interest expenses

Borrowing

Direct materials

Collection from credit sales

Direct labour

Manufacturing overhead

Purchase of land

Selling and administrative expenses

Collection of notes receivable

Repayment

Proceeds from sale of securities

Total receipts

Total available cash

Less: Disbursements

Direct labour

Proceeds from sale of securities

Purchase of land

Manufacturing overhead

Interest expenses

Selling and administrative expenses

Borrowing

Repayment

Collection from credit sales

Collection of notes receivable

Direct materials

Interest expenses

Collection of notes receivable

Collection from credit sales

Purchase of land

Manufacturing overhead

Proceeds from sale of securities

Direct materials

Direct labour

Repayment

Borrowing

Selling and administrative expenses

Selling and administrative expenses

Direct materials

Repayment

Collection from credit sales

Interest expenses

Borrowing

Collection of notes receivable

Proceeds from sale of securities

Purchase of land

Direct labour

Manufacturing overhead

Purchase of land

Repayment

Selling and administrative expenses

Interest expenses

Borrowing

Collection from credit sales

Collection of notes receivable

Direct labour

Manufacturing overhead

Proceeds from sale of securities

Direct materials

Borrowing

Collection of notes receivable

Selling and administrative expenses

Repayment

Interest expenses

Proceeds from sale of securities

Direct labour

Manufacturing overhead

Purchase of land

Direct materials

Collection from credit sales

Total disbursements

Excess of cash available over cash disbursements

Financing:Borrowing

Add

Less

:

Manufacturing overhead

Borrowing

Collection from credit sales

Proceeds from sale of securities

Repayment

Direct labour

Direct materials

Purchase of land

Interest expenses

Selling and administrative expenses

Collection of notes receivable

Add

Less

:

Borrowing

Collection from credit sales

Repayment

Manufacturing overhead

Proceeds from sale of securities

Collection of notes receivable

Interest expenses

Direct materials

Direct labour

Selling and administrative expenses

Purchase of land

Total financing

Lorch Company prepares monthly cash budgets. Relevant data from operating budgets for 2021 are as follows: Sale $349,000 $400,000 Direct materials purchas 121,000 109,000 Direct labour 86,000 113,000 Manufacturing overhead 60,000 75,000 Selling and administrative expenses 76,000 81,000 All sales are on account. Lorch expects collections to be 50% in the month of sale, 40% in the rst 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 2020, $202,000; December 2020, $280,000 2. Purchases of direct materials: December 2020, $39,000 3. Other receipts: Januarycollection of December 31, 2020, not receivable $5,000; Februaryproceeds from sale of securities $5,000 4. Other disbursements: Februarypayment of $20,000 for land The company expects its cash balance on January 1, 2021, tn be $49,000. It wants to maintain a minimum cash balance of $40,000. Prepare schedules for (1) the expected collections from customers. Month January February November $ 20200 $ December 140,000 112,000 January 174,500 139,600 February 200,000 $ 334,700 451,600 (2) the expected payments for direct materials purchases. Month January February December $ 62,300 $ January 36,300 84,700 February 32,700 98,600 117,400