One unique subunit of the University of Wisconsin is Bice Cream, a functioning producer of dairy products must prepare budgets. Blce Cream prepares monthly cash budgets. Relevant data from assumed operating budgets for 2011 are: January February Sales 460.000 412.000 Direct materials purchases 185.000 210.000 Direct labor 70.000 85.000 Manufacturing overhead 50.000 65.000 Selling and admin. expenses 85.000 95.000 Collections are expected to be 75% in the month of sale, and 25% in the month following sale. Bice pays 60% of direct materials purchases in cash in the month of purchase, and the balance due in the month following the purchase. All other items above are paid in the month incurred. (Depreciation has been excluded from manufacturing overhead and selling and administrative expenses.). Other data: Sales: December 2010, 320.000; Purchases of direct materials: December 2010, 175.000; Other receipts: January-Donation received, 2.000; February-Sale of used equipment, 4.000; Other disbursements: February-Purchased equipment, 10.000 Repaid debt: January, 30.000. The company's cash balance on January 1, 2011, is expected to be 50.000. The company wants to maintain a minimum cash balance of 45.000. 1. Prepare schedules for expected collections from customers and expected payments for direct materials purchases. 2. Prepare a cash budget for January and February in columnar form. One unique subunit of the University of Wisconsin is Bice Cream, a functioning producer of dairy products must prepare budgets. Blce Cream prepares monthly cash budgets. Relevant data from assumed operating budgets for 2011 are: January February Sales 460.000 412.000 Direct materials purchases 185.000 210.000 Direct labor 70.000 85.000 Manufacturing overhead 50.000 65.000 Selling and admin. expenses 85.000 95.000 Collections are expected to be 75% in the month of sale, and 25% in the month following sale. Bice pays 60% of direct materials purchases in cash in the month of purchase, and the balance due in the month following the purchase. All other items above are paid in the month incurred. (Depreciation has been excluded from manufacturing overhead and selling and administrative expenses.). Other data: Sales: December 2010, 320.000; Purchases of direct materials: December 2010, 175.000; Other receipts: January-Donation received, 2.000; February-Sale of used equipment, 4.000; Other disbursements: February-Purchased equipment, 10.000 Repaid debt: January, 30.000. The company's cash balance on January 1, 2011, is expected to be 50.000. The company wants to maintain a minimum cash balance of 45.000. 1. Prepare schedules for expected collections from customers and expected payments for direct materials purchases. 2. Prepare a cash budget for January and February in columnar form