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Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. Sales Direct materials purchases Direct labor Manufacturing overhead Selling
Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. Sales Direct materials purchases Direct labor Manufacturing overhead Selling and administrative expenses January $388,800 129,600 97,200 75,600 85,320 February $432,000 135,000 108,000 81,000 91,800 All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the first month following the incurred except for selling and administrative expenses that include $1,080 of depreciation per month Other data: 1. Credit sales: November 2019, $270,000: December 2019, $345,600. 2. Purchases of direct materials: December 2019, $108,000. 3. Other receipts: January--Collection of December 31, 2019, notes receivable $16,200, February--Proceeds from sale of securities 56.480. 4. Other disbursements: February-Payment of $6,480 cash dividend. The company's cash balance on January 1, 2020, is expected to be $64.800. The company wants to maintain a minimum Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases Expected Collections from Customers January February November 54000 December 103680 69120 January 194400 116640 February 216000 Total collections Expected Payments for Direct Materials December 43200 January 77160 51840 February 81000 Total payments 120960 132840 Prepare a cash budget for January and February in columnar form. COLTER COMPANY Cash Budget J a nuary February Expected Payments for Direct Materials January February cember 43200 nuary 77760 51840 ebruary 81000 Total payments 120960 132840 Prepare a cash budget for January and February in columnar form. COLTER COMPANY Cash Budget January February
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