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Crane Company prepares monthly cash budgets. Relevant data from operating budgets for 2022 are as follows. Al sales are on account. Colections are expected to

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Crane Company prepares monthly cash budgets. Relevant data from operating budgets for 2022 are as follows. Al sales are on account. Colections are expected to be 50% in the month of sole, 30% in the first month following the sale, and 20% in the second month following the sale. Sixty percent (60sil of direct materials purchases are paid in cashin the month of purchase, and the balance due is paid in the month following the purchase. All other items above are pald in the month incurred except for selling and administrative expenses that indude $800 of deprediation per month. Otherdata: 1. Credit sales: November 2021, 3200000 , December 2021,$256,000 2. Purchases of direct materias December 2021500,000 . 3. Other receipts. January-Collection of December 31. 2021, notes receivable $121000. administrative expenses that include $800 of deprediationper month. Other data: 1. Credit sales: November 2021,$200,000, December 2021,$256,000. 2. Purchases of direct materials: December 2021,$80,000. 3. Other receipts: January-Collection of December 31, 2021, notes receivable $12,000; February-Proceeds from sale of securities $4,800. 4. Other disbursements: February-Payment of $4,800 cash dividend The company's cash balance on January 1,2022. is expected to be $48,000. The compary wants to maintain a minimum cash balance of $40,000. Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materiais purchases for January and February. CRANECOMPANY Schedule of Expected Payments for Direct Materials For the Two Months Ending February 28, 2022 Prepare a cash budget for January and February in columnar form. CRANE COMPANY Cash Budget For the Two Months Ending February 28, 2022 Preparea cash budget for January and February in columnar form

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