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Pronghorn Company prepares morthly cash budgets. Relevant data from operating budgets for 2017 are as ollows Sales Direct materials purchases 375,840 $417,600 Manufacturing overhead Selling
Pronghorn Company prepares morthly cash budgets. Relevant data from operating budgets for 2017 are as ollows Sales Direct materials purchases 375,840 $417,600 Manufacturing overhead Selling and administrative expeses 73,080 2,476 3,960 104,400 78,300 6,740 All sales are on acceunt. Colection, are expected to be 50% n the month of sile. 36% "s me hrM merth followr9 the sale, and N% in the eten, moniakne a ne ait any penont leos) teet materials parehases are paud in nash in the month of purchase, and the balance e is paid in the month following the prchine All other ems above are pad in the month inurred ecesn for selling and administrative expenses that include $1,04 of deprecation per mor Other data 1. aedit sales: November 2016, $261,000; December 2016, $334,080. Purchases of direct materials: December 2016, 5101,400 3. Other receipts: January Collection of December 31, 2016, notes recevable $15,660 february-Proceeds from sale of securities $6,26 Other disbursements: february-Payment of $6,264 cash dividend The company's cash Salance on January 1, 2017,expected to be $52,640. The company wants to maintain a minimm cash balance of $52,200. Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for Jamuary and Februsry Expected Collections from Customers January F ebruary November December January February Total collections Expected Payments for Direct Materials January l ebruary December January February Total payments s Prepare a cash budget for January and February in columnar form. (Do not leave any answer field blank. Enter 0 for amounts.) PRONGHORN COMPANY Cash Budget lanuary February
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