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Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows: January February Sales Direct materials purchases Direct labor Manufacturing
Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows: January February Sales Direct materials purchases Direct labor Manufacturing overhead Selling and administrative expenses $ 390,960 $434,400 135,750 108,600 81,450 92,310 130,320 97,740 76,020 85,794 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 $ 1,086 of depreciation per month Other data: Credit sales: November 2016,271,500 ; December 2015, Purchases of direct materials: December 2016, 108,600 Other receipts: January-Collection of December 31, 2016, notes receivable 347,520 1. 2. 16,290 ; February-Proceeds from sale of securities $6,516 4. Other disbursements: February-Payment of $6,516 cash dividend The company's cash balance on January 1, 2017, is expected to be 65,160 . The company wants to maintain a minimum cash balance of54,300 Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February Expected Collections from Customers Janua Februar November December anuary February Total collections s Expected Payments for Direct Materials Janua Februar December anuary February Total payments s Prepare a cash budget for January and February in columnar form. (Do not leave any answer field blank. Enter 0 for amounts.)
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