do Instructions a) & b)

P21-3A Nigh Corporation prepares monthly cash budgets. Relevant data from operating budgets for 2017 Prepare cash budget. (LO4) AP follow: Sales Direct materials purchases Direct labour Manufacturing overhead Selling and administrative expenses January $350,000 120,000 80,000 70,000 79,000 February $400,000 130,000 100,000 75,000 81,000 month of sale, 30% in the first month following percent of direct materials purchases are paid in the month following the purchase. All other items 8 and administrative expenses, which include $1,000 of All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the sale, and 20% in the second month following the sale. Sixty percent of direct materia cash in the month of purchase, and the balance due is paid in the month following the po above are paid in the month incurred, except for selling and administrative expenses depreciation per month. Other data: 1. Credit sales: November 2016, $260,000; December 2016, $300,000 2. Purchases of direct materials: December 2016, $100,000 3. Other receipts: January collection of December 31, 2016, notes receivable, $15,000 Febru of investments, $6,000 4. Other disbursements: February payment of dividends, $5,000 The company's cash balance on January 1, 2017, is expected to be $60,000. The company wam minimum cash balance of $50,000. 31, 2016, notes receivable, $15,000 February proceeds from sale Instructions uuses for (1) the expected cash collections from customers and (2) the expected payments for direct materials purchases. (D) Prepare a cash budget for January and February