Problem 13 4 (Part Level Submission) Pina Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows: February $400,800 127,750 January $367,920 122,640 91.980 21.540 80.738 Direct materials purchases Direct labor Manufacturing overhead Selling and administrative expenses 102,200 75,650 86,870 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 materals purchases are paid in cash in the month of purchase, and the balance dues in the month following the purchase. Al other items above are paid in the month incurred except for selling and administrative expenses that indude $1,022 of depreciation per month Other data: 1. Credit sales November 2016, $255,500: December 2016. $327.040. 2. Purchases of direct materials December 2016, $102,200. 3. Other receipts: January Collection of December 31, 2016, notes receivable $15.330 February Proceeds from sale of securtes 16.132. 4. Othersbursement: February Payment of $5,132 cash dividend. The company's cash balance on January 1, 2017 expected to be $61.320. The company warto a minum Castelande 2 your answer is correct URCES Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February Expected Collections from Customers February November December January February Study Total collections Expected Payments for Direct Materials December January February Total payments OURCES PINA COMPANY Cash Budget For the Two Months Ending February 28, 2017 February 39 Beginning Cash Balance Pari Add Receipts Collections from customers Notes Receivable by Study sale of Securnies Total Recepts Total Available Cash L ets Direct Materials Direct Labor Manufacturing Overhead Selling and Administrative Expenses Direct Labor 91980 Manufacturing Overhead 71540 Selling and Administrative Expenses Cash Dividend