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Please solve section b. Problem 21-4A (Part Level Submission) Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows:
Please solve section b.
Problem 21-4A (Part Level Submission) Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows: February $427,680 $475,200 148,500 118,800 89,100 100,980 January ales Direct materials purchases Direct labor 142,560 106,920 83,160 93,852 Manufacturing overhead Selling and administrative expenses 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 $1,188 of depreciation per month Other data: 1. Credit sales: November 2016, $297,000; December 2016, $380,160 2. Purchases of direct materials: December 2016, $118,800. 3. Other receipts: January-Collection of December 31, 2016, notes receivable $17,820; February-Proceeds from sale of securities $7,128. Other disbursements: February-Payment of $7,128 cash dividend 4. The company's cash balance on January 1, 2017, is expected to be $71,280. The company wants to maintain a minimum cash balance of $59,400 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 Janua Februa November 59400 0.00 December 114048.00 76032 January 213840 128304 February 237600 Total collections 387288 441936 Expected Payments for Direct Materials Janua Februa December January February 47520 85536 57024 89100 Total payments 133056 146124 Click if you would like to Show Work for this question: Open Show Work Prepare a cash budget for January and February in columnar form. (Do not leave any answer field blank. Enter 0 for amounts.) COLTER COMPANY Cash Budget January February Click if you would like to Show Work for this question: Open Show WorkStep by Step Solution
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