Lorch Company prepares monthly cash budgets. Relevant data from operating budgets for 2021 are as follows: January February 23 Sales $357,000 $404,000 Direct materials purchases 119,000 111,000 Direct labour 84,000 112,000 59,000 76.000 Manufacturing overhead 76,000 80,000 Selling and administrative expenses All sales are on account. Lorch expects collections to be 50% in the month of sale, 40% in the first month following the sale, and 10% in the second month following the sale. It pays 30% of direct materials purchases in cash in the month of purchase and the balance due in the month following the purchase. Other data are as follows: 1. Credit sales: November 2020. $ 201,000: December 2020, $277,000 12:37 PM 3/24/22 LAAAA 10C BENG Type here to search Other data are as follows: 1. Credit sales: November 2020, $201,000: December 2020, $277,000 2. Purchases of direct materials: December 2020. $90,000 3. Other receipts: January-collection of December 31, 2020, notes receivable $4,000; February-proceeds from sale of securities $6,000 4. Other disbursements: February-payment of $20,000 for land h The company expects its cash balance on January 1, 2021, to be $50,000. It wants to maintain a minimum cash balance of $41,000. Prepare schedules for (1) the expected collections from customers. February Month January $ November 1238 PM 3/24/22 10C ENG Type here to search Maybe Sonic taste Prepare schedules for (1) the expected collections from customers. Month January February November $ December January February $ (2) the expected payments for direct materials purchases. 1233 PM 3/2422 10C BENG o E Type here to search Moby Somierastra (2) the expected payments for direct materials purchases. Month January February December January February $ e Textbook and Media Prepare a cash budget for January and February using columns for each month. 1238 PM 2022 10C O ENG Type here to search Question 3 of 4 -14 Prepare a cash budget for January and February using columns for each month. LORCH COMPANY Cash Budget For the Two Months Ending February 28, 2021 Jan Feb Beginning cash balance $ $ Add: Cash receipts Total receipts 12:38 PM 3/24/22 10C 64 PENG W O o O Type here to search Total receipts Total available cash Less: Disbursements Total disbursements 10C O ENG 12:38 PM 3/24/22 C Type here to search my Samlet Question 3 of 4 - 14 E Total disbursements Excess of cash available over cash disbursements Financing: Borrowing Total financing 41000 $ Ending cash balance e Textbook and Media 10C 64 PENG 12:38 PM 3/24/22 O G Type here to search LORCH COMPANY Cash Budget he Two Months Ending February 28, 2021 Jan Feb Total $ $ 10C
