Problem 21-4A

Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows:

Problem 21-4A Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows: Sales Direct materials purchases Direct labor Manufacturing overhead Selling and administrative expenses January $411,120 137,040 102,780 79,940 90,218 February $456,800 142,750 114,200 85,650 97,070 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 $1,142 of depreciation per month Other data: 1. 2. 3. Credit sales: November 2016, $285,500; December 2016, $365,440. Purchases of direct materials: December 2016, $114,200. Other receipts: January-Collection of December 31, 2016, notes receivable $17,130; February-Proceeds from sale of securities $6,852. Other disbursements: February-Payment of $6,852 cash dividend. 4. The company's cash balance on January 1, 2017, is expected to be $68,520. The company wants to maintain a minimum cash balance of $57,100. Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February. Expected Collections from Customers January February November December January February February Total collections Expected Payments for Direct Materials January February December January February Total payments Prepare a cash budget for January and February in columnar form. (Do not leave any answer field blank. Enter o for amounts.) COLTER COMPANY Cash Budget January February Prepare a cash budget for January and February in columnar form. (Do not leave any answer field blank. Enter O for amounts.) COLTER COMPANY Cash Budget January February