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

Prepare a cash budget for January and February in columnar form. (Do not leave any answer field blank. Enter 0 for amounts.) - need excess (deficeinecy) of available cash over cash disbrustments

Need Add: borrowing

need - add: repayments and ending cash balance