Problem 22-04A a-b (Video) Blossom Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. Sales Direct materials purchases Direct labor Manufacturing overhead Selling and administrative expenses January $442,800 147,600 110,700 86,100 97,170 February $492,000 153,750 123,000 92,250 104,550 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 $1,230 of depreciation per month. Other data: 1. 2. 3. Credit sales: November 2019, $307,500; December 2019, $393,600. Purchases of direct materials: December 2019, $123,000. Other receipts: January-Collection of December 31, 2019, notes receivable $18,450; February-Proceeds from sale of securities $7,380. Other disbursements: February-Payment of $7,380 cash dividend. 4. The company's cash balance on January 1, 2020, is expected to be $73,800. The company wants to maintain a minimum cash balance of $61,500. Your answer is partially correct. Try again. 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 61500 December 196800 T 78720 January 221400 T 132840 February 246000 Total collections 479700 457560 Expected Payments for Direct Materials January February December 49200 January 88560 59040 February 92250 Total payments 137760 151290 Your answer is partially correct. Try again. Prepare a cash budget for January and February in columnar form. BLOSSOM COMPANY Cash Budget For the Two Months Ending February 28, 2020 January February Beginning Cash Balance 73800 141450 Disbursements T Collections from Customers 479700 T 457560 Notes Receivable 18450 T Sale of Securities 7380 571950 606390 Repayments T Direct Materials 137760 151290 Direct Labor 110700 T 123000 T Manufacturing Overhead T 86100 92250 T Selling and Administrative Expenses , 95940 T 103320 T Cash Dividend 7380 Total Receipts 430500 477240 T Excess (Deficiency) of Available Cash Over Cash Disbursements 141450 129150