cash budget

Question 3 of 4 6.86 / 12 111 View Policies Show Attempt History Current Attempt in Progress Blossom Company prepares monthly cash budgets. Relevant data from operating budgets for 2022 are as follows. February January $288,000 Sales $320.000 Direct materials purchases 96,000 100,000 Direct labor 72.000 80,000 56,000 60,000 Manufacturing overhead Selling and administrative expenses 63,200 68,000 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 clue 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 includes B00 of depreciation per month Other data 1 Credit sales: November 2021. $ 200.000: December 2021. $ 256,000 2 Purchases of direct materials: December 2021, $ 80,000 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 s 800 of depreciation per month Other data: 1. 2. 3 Credit sales: November 2021, $ 200,000: December 2021 $256.000. Purchases of direct materials: December 2021,$ 20,000, Other receipts: January Collection of December 31, 2021, notes receivable $12.000. February - Proceeds from sale of securities $ 4,800 Other disbursements: February Payment of $4800 cash dividend, 4 The company's cash balance on January 1, 2022 is expected to be $ 18,000. The company wants to maintain a minimum cash balance of $ 40,000 (a) uuestion 3 of 4 6.86/12 5 Prepare a cash budget for January and February in columnar form. BLOSSOM COMPANY Cash Budget For the Two Months Ending February 28, 2022 January $ Beginning Cak Balance Add Collections from Customers Not Receivable Sole of Securities Borrowie Recelets LE A Hotels Highway Home-Shared Gin chinese - Goo Guru Login Fetch het apo fecho 07 Assignment Question 3 of 4 6.86/12 DOEN