Chapter 23-Budgetary Planning Preparing Financial Budgets e.) The company has $15,00o in cash on hand at December 31, 2016. Other data: 1. Sales for November were $391,000 and December were $403,ooo. All sales are on account. Collections are expected to be 40% in the rnonth of sale, 35% in the first month following the sale, 25% in the second month following the sale. Direct material purchases for December amounted to $309,900; January purchases were $459.500; February purchases totaled $504,800; and March purchases were $542,100 Outdoorsies pays 70% ofthem aterial purchases incash inthe month of purchase and the balance due is paid in the month following the purchase. 2. Direct labor costs for January are $90,000; February $130,00o; and March $170,000. These costs are paid as incurred. 3. Manufacturing overhead is $25,00o for January; $32,oo0 for February, and $36,000 for March. In these amounts is $6,0oo for depreciation on factory machinery. All overhead costs are paid in cash as incurred (except depreciation). 4. All selling & administrative expenses are paid in cash as incurred (except for depreciation) 5. 6. 7. 8. Outdoorsies plans to pay a cash dividend of $5,00o at the end of the first quarter. The company plans to sell equipment for its salvage value of $12,000 in March. Outdoorsies makes quarterly payments of its estimated income taxes. So the estimated income taxes for the quarter will be paid in March. 9. The company tries to maintain a $15,000 cash balance. Therefore, in any month where the cash falls below that amount -the company will use its line of credit at its bank to make-up the difference. Loans are repaid in the earliest period in which there is a sufficient cash balance (that is, when the cash on hand exceeds the $15,000 minimum required balance). The interest rate on the line of credit for any borrowed funds is 24% annually. Prepare a schedule detailing the collections from customers and the cash payments for direct materials. Then prepare the company's cash budget for each month of the first quarter of 2017. Round to whole dollars