q34

Current Attempt in Progress Sunland Company prepares monthly cash budgets. Relevant data from operating budgets for 2022 are as follows. 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 20x in the second month following the sale. Sixty percent 160% of direct materials purchases are paid in cash in the month of purchase, and the balance due is paid in the month forlowing the puir chase. Alt other items above are pald th the month incurfed except for selling and administrative expenses that include $940 of depreciation per month. Prepare a cash budiget for Jamuary and February in columnar form. Question 3 of 4 /12 Expected Payments for Direct Materlals eTextbook and Media sinefortater Attempts: 0 of 5 used Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February. 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 $940 of depreciation per month. Other data: 1. Credit sales: November 2021,$235,000; December 2021,$300,800. 2. Purchases of direct materials: December 2021, $94,000 3. Other receipts: January-Collection of December 31, 2021, notes recelvable $14,100; February-Proceeds from sale of securities $5,640. 4. Other disbursements: February-Payment of $5,640 cash dividend. The company's cash balance on January 1,2022, is expected to be $56,400. The company wants to maintain a minimum cash batance of $47,000