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Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows January February Sales $363,600 $404,000 Direct materials purchases 121,200
Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows January February Sales $363,600 $404,000 Direct materials purchases 121,200 126.250 Direct labor 90,900 101.000 Manufacturing overhead 70,700 75,750 Selling and administrative expenses 79.790 85,850 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 doe is paid in the month following he purchase. All other items above are paid in the month incurred except for selling and administrative expenses that inckude $1,010 of depreciation per month Other data: 1. Credit sales: November 2019, $252,500; December 2019, $323,200 2. Purchases of direct materials: December 2019, $101,000 Other receipts: January-Collection of December 31, 2019, notes receivable $15,150 3 February-Proceeds from sale of securities $6.060 4. Other disbursements: February-Payment of $6,060 cash dividend The company's cash balance on January 1,2020, is expected to be $60,600. The company wants to maintain a minimum cash balance of $50,500 Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February. Expected Collections from Customers January February $ November December January February Total collections $ Expected Payments for Direct Materials February January December January February Total payments Prepare a cash budget for January and February in columnar form COLTER COMPANY Cash Budget February January $ $
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