Current Attempt in Progress Sheffield Company prepares monthly cash budgets. Relevant data from operating budgets for 2022 are as follows. January February Sales $468,000 $520,000 Direct materials purchases 156,000 162,500 Direct labor 117,000 130,000 Manufacturing overhead 91.000 97.500 Selling and administrative expenses 102,700 110,500 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 $1.300 of depreciation per month, Other data: 1 Credit sales: November 2021, $325,000, December 2021, $416,000. 2 Purchases of direct materials: December 2021, $130,000 3. Other receipts: January-Collection of December 31, 2021. notes receivable $19.500 February-Proceeds from sale of securities $7,800. 4. Other disbursements: February-Payment of $7,800 cash dividend. SUP The company's cash balance on January 1, 2022, is expected to be $78,000. The company wants to maintain a minimum cash balance of $65,000. (a) Your answer is correct. Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February. SHEFFIELD COMPANY Schedule of Expected Collections from Customers For the Two Months Ending February 28, 2022 January February November $ 65000 $ December 124800 83200 January 234000 140400 February 0 260000 SUB Total collections $ 423800 $ 483600 December January February SHEFFIELDCOMPANY Schedule of Expected Payments for Direct Materials For the Two Months Ending February 28, 2022 January Total payments eTextbook and Media February 52000 $ 93600 62400 0 97500 145600 159900 A Prepare a cash budget for January and February in columnar form. SHEFFIELD COMPANY Cash Budget January Febri SU $ nework 4 Ques Total Available Cash Direct Labor Total Disbursements Disbursements Beginning Cash Balance Selling and Administrative Expenses Direct Materials Financing Receipts Excess (Deficiency) of Available Cash Over Cash Disbursements Collections from Customers Repayments Cash Dividend Ending Cash Balance Manufacturing Overhead Total Receipts Borrowings Sale of Securities Notes Receivable eTextbook and Media. 2.5/5