I just need help on the cash budget part (RED ERROR PART), I can't seem to find the answers for those mistakes. Please help! This is due 11:59 PST! THANK YOU
Question 4 Cullumber Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. January February 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 . Credit sales: November 2019, $257,500; December 2019, $329,600. 2. Purchases of direct materials: December 2019, $103,000. 3 . Other receipts: January-Collection of December 31, 2019, notes receivable $15,450; February-Proceeds from sale of securities $6,180. 4. 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. (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. Expected Collections from Customers January February November TAL 51500 December 98880 65920 V January 185400 111240 February 206000Prepare 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 51500 December 98880 65920 V January 185400 111240 V February 206000 Total collections 335780 383160 Expected Payments for Direct Materials January February December $ 41200 January 74160 49440 February 77250 Total payments 115360 126690 Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTIONPrepare a cash budget for January and February in columnar form. CULLUMBER COMPANY Cash Budget For the Two Months Ending February 28, 20204 January February x Beginning Cash Balance 61800 $ Add + Receipts V V Collections from Customers 335780 383160 V Notes Receivable 15450 Sale of Securities 180 Total Receipts 351230 389340 X Total Available Cash 413030 Less Disbursements x Direct Materials Direct Labor 92700 103000 v Manufacturing Overhead 72100 77250 x x Selling and Administrative Expenses 80370 86550 Total Disbursements Excess (Deficiency ) of Available Cash Over Cash Disbursements Financing x Borrowings Add Borrowings Less V Repayment Ending Cash Balance
