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Csah Budget Name Astro Company is preparing a cash budget for the first quarter of the year 2020. The following information is available: November December

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Csah Budget Name Astro Company is preparing a cash budget for the first quarter of the year 2020. The following information is available: November December January February March Sales S460,000 S480,000 $470,000 $490,000 $450.000 Direct Material Purchases $85,000 $89.000 $92,000 $88.000 S86,000 Direct Labor Costs $180,000 $190,000 S208,000 $230,000 $200,000 Overhead Costs $95,000 $98,000 $103.000 $108,000 $101,000 Selling and Admin Costs $76,000 $76,000 $76,000 $76,000 $76,000 All sales are on account. The sales on account are collected as follows: 20% in the month of sale; 70% in the month following the sale; and 10% in the second month following the sale. All purchases of direct materials are on account. The purchases on account are paid as follows: 80% in the month of purchase and 20% in the month following the purchase, All of the other costs are paid as incurred. The overhead costs include $7,000 of monthly depreciation and the selling and administrative costs include $3,000 of monthly depreciation. The projected beginning cash balance on January 1 is $10,000. Wilbur Company would like to maintain a $10,000 beginning cash balance each month. Wilbur intends to pay an $8,000 cash dividend to preferred shareholders in March. REQUIRED: A Prepare a schedule of cash collections from sales for January February, and March. SCHEDULE OF CASH COLLECTIONS FROM SALES November December January February March Sales Cash Collections of CREDIT sales: 20%--Month of Sale 70%-- 1 Month after Sale 10%--2 Months after Sale Total Collections from Sales B. C. Determine the expected accounts receiavble balance on March 31. Prepare a schedule of cash payments for direct material purchases for January February, and March SCHEDULE OF CASH PAYMENTS FOR DIRECT MATERIAL PURCHASES November December January February DM Purchase Cost Given March Cash Payments: 80%-Month of Purchase 20%-1 Month After Purchase Total Payments for Purchase D. E. Determine the expected accounts payable balance on March 31. Prepare a cash budget for January, February, and March. CASH BUDGET January February March F Based on the results of your budget, do you think some additional cash planning is required? Give TWO possible suggestions for amending the cash budget

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