Qno4

Novak Company prepares monthly cash budgets. Relevant data from operating budgets for 2023 are as follows: All sales are on account. Novak expects collections to be 50% in the month of sale, 40% in the first month following the sale, and 10% in the second month following the sale. It pays 30% of direct materials purchases in cash in the month of purchase and the balance due in the month following the purchase. Other data are as follows: Other data are as follows: 1. Credit sales: November 2022,$202,000; December 2022,$280,000 2. Purchases of direct materials: December 2022,$89,000 3. Other receipts: January-collection of December 31,2022 , notes receivable $5,000; February-proceeds from sale of securities $5,000 4. Other disbursements: February-payment of $20,000 for land The company expects its cash balance on January 1,2023 , to be $49,000. It wants to maintain a minimum cash balance of $40,000. Prepare schedules for (1) the expected collections from customers. (2) the expected payments for direct materials purchases. LORCH COMPANY Cash Budget For the Two Months Ending February 28, 2023 Total $ $