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Q2- 1. The January 1,2023 , cash balance is expected to be $4,000. Hayes wishes to maintain a balance of at least $10,000. 2. Sales in each quarter are 18,000;21,000;24,000 and 27,000 respectively. 40% are collected in the quarter sold and 60% are collected in the following quarter. Accounts receivable of $6,000 at December 31,2022 , are expected to be collected in full in the first quarter of 2023. 3. Short-term investments are expected to be sold for $20,000 cash in the first quarter. 4. Direct materials costs for each quarter are: 2,520;2,920;3,320 and 3,720 respectively. 50.00% are paid in the quarter purchased and 50% are paid in the following quarter. Accounts payable of $1,000 at December 31,2022 , are expected to be paid in full in the first quarter of 2023. 5. Direct labor costs for each quarter are: 6,200;7,200;8,200 and 9,200 respectively 100% is paid in the quarter incurred. 6. Manufacturing overhead cost for each quarter are: 5,710;6,010;6,310 and 6,610 respectively. All items except depreciation are paid in the quarter incurred. Depreciation expense for the year was 1,520 . 7. Selling and administrative expenses for each quarter are: 4,200; 4,400; 4,600 and 4,800 respectively. All items except depreciation are paid in the quarter incurred. Depreciation expense for the year was 400 . 8. Management plans to purchase a truck in the second quarter for $10,000 cash. 9. Hayes makes equal quarterly payments of its estimated annual income taxes of 1,200 . 10. Loans are repaid in the earliest quarter in which there is sufficient cash (that is, when the cash on hand exceeds the $10,000 minimum required balance). Interest paid on borrowing in the third quarter was 100 , and fourth quarter was 250 . INSTRUCTIONS: 1 Prepare the Schedule of: (a) Expected Collections from Customers (b) Expected Payments for Direct Materials 2 Cash Budget for the year 2023 Answer 02: Hayes Company Cash Budget For the Year Ending December 31, 2023