February Problem 22-04A a-b (Video) Cullumber Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. January Sales $370,800 $412,000 Direct materials purchases 123,600 128,750 Direct labor 92,700 103,000 Manufacturing overhead 72,100 77,250 Selling and administrative expenses 81,370 87,550 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 $1,030 of depreciation per month. Other data: 1 2 3 Credit sales: November 2019, $257,500; December 2019, $329,600. Purchases of direct materials: December 2019, $103,000. Other receipts: January-Collection of December 31, 2019, notes receivable $15,450; February-Proceeds from sale of securities $6,180. Other disbursements: February-Payment of $6,180 cash dividend. The company's cash balance on January 1, 2020, is expected to be $61,800. The company wants to maintain a minimum cash balance of $51,500. Your answer is correct. Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February. Expected Collections from Customers January February November 51,500 $ December 98,880 65,920 January 185,400 111,240 > February 206,000 Total collections 335,780 383,160 Expected Payments for Direct Materials January February December 41,200 January 74,160 49,440 > February 77,250 Total payments 115,360 126,690 x Your answer is incorrect. Try again. Prepare a cash budget for January and February in columnar form. CULLUMBER COMPANY Cash Budget January February x X x! X DOO