Coolidge Company is preparing a cash budget for the first three months of 2021. The following budgeted information is available 2020 2021 Budgeted November December January February March Item: Sales $676,500 $717,500 $758,500 $738,000 $779,000 Direct Material $47,300 $49,900 $51,400 $52,100 $53,500 Purchases Direct Labor $287,300 $305,400 $316,700 $313,000 $320,400 Costs Overhead $226,500 $232,100 $236,300 $235,700 $238,200 Costs Selling and $129,600 $132,000 $134,400 $133,200 $135,600 AdminAll sales are on account. All direct material purchases are on account. All costs besides direct material purchases are paid as incurred. The overhead costs include $3,000 of monthly depreciation and the selling and administrative costs include $1,000 of monthly depreciation. In February, Coolidge must make a $2,200 cash dividend payment to preferred shareholders and in March, Coolidge must make a $15,000 installment payment on a note payable. The projected beginning balance of cash on January 1 is $5,000. Coolidge would like to maintain a minimum $5,000 cash balance. Required: PartA In the attached workpaper #2: 1. Using the collection pattern indicated on the workpaper, prepare a schedule of cash collection from sales for January, February, and March. (9 pts) 2. Using the payment pattern indicated on the workpaper, prepare a schedule of cash payments for direct materials for January, February, and March. (6 pts) Part B 1. What is the expected Accounts Receivable balance at the end of March? (3 pts) 630300 2. What is the expected Accounts Payable balance at the end of March? (1 pt) 11 Exam 4 Workpaper #2A.pdf 11 Exam 4 Workpaper #2A.xlsx _ You will submit your completed workpaper file in the next question.Exam 4 Workpaper #2 Version A Prepare a schedule of cash collections from sales. SCHEDULE OF CASH COLLECTIONS FROM SALES November December January February March CREDIT Sales $ 676,500 | $ 717,500 $ 758,500 | $ 738,000 $ 779,000 Cash Collections of CREDIT sales: 30%--Month of Sale 202.950 215,250 227,400 221,400 55%--1 Month after Sale 373,075 394,625 416,900 405,900 15%--2 Months after Sale 101,475 107,625 113,700 Total Collections of Credit Sales 723,500 $ 745,925 Prepare a schedule of cash payments for materials. SCHEDULE OF CASH PAYMENTS FOR DIRECT MATERIAL PURCHASES November December January February March DM Purchase Costs Cash Payments: 70%-Month of Purchase 30%-1 Month After Purchase Total Payments for Purchases Prepare a cash budget. CASH BUDGET January February March Cash Receipts: collections for sales sales of equipment sale of securities Cash Payments: Purchase of materials Direct Labor cost Manufacturing Overhead Selling and admin expenses Payment of dividend Payment of property taxes Total disbursements Excess Cash available Borrowings' Ending Cash Balance
