Problem 23-4A Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows:

January February Sales $375,840 $417,600 Direct materials purchases 125,280 130,500 Direct labor 93,960 104,400 Manufacturing overhead 73,080 78,300 Selling and administrative expenses 82,476 88,740

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 $1,044 of depreciation per month.

Other data:

1. Credit sales: November 2016, $261,000; December 2016, $334,080. 2. Purchases of direct materials: December 2016, $104,400. 3. Other receipts: JanuaryCollection of December 31, 2016, notes receivable $15,660; FebruaryProceeds from sale of securities $6,264. 4. Other disbursements: FebruaryPayment of $6,264 cash dividend.

The companys cash balance on January 1, 2017, is expected to be $62,640. The company wants to maintain a minimum cash balance of $52,200. Correct answer. 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 January February November $ Entry field with correct answer $ Entry field with correct answer December Entry field with correct answer Entry field with correct answer January Entry field with correct answer Entry field with correct answer February Entry field with correct answer Entry field with correct answer Total collections $ Entry field with correct answer $ Entry field with correct answer

Expected Payments for Direct Materials January February December $ Entry field with correct answer $ Entry field with correct answer January Entry field with correct answer Entry field with correct answer February Entry field with correct answer Entry field with correct answer Total payments $ Entry field with correct answer $ Entry field with correct answer

Show Solution Show Answer Link to Text Partially correct answer. Your answer is partially correct. Try again. Prepare a cash budget for January and February in columnar form. (Do not leave any answer field blank. Enter 0 for amounts.)

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