Question 1 of 1 0.5 / 1 Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. January February Sales $396,000 $440,000 Direct materials purchases 132,000 137,500 Direct labor 99,000 110,000 Manufacturing overhead 77,000 82,500 Selling and administrative expenses 86,900 93,500 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 $1,100 of depreciation per month. Other data: 1. Credit sales: November 2019, $275,000; December 2019, $352,000. 2. Purchases of direct materials: December 2019, $110,000. 3. Other receipts: January-Collection of December 31, 2019, notes receivable $16,500; February - Proceeds from sale of securities $6,600. 4. Other disbursements: February-Payment of $6,600 cash dividend. The company's cash balance on January 1, 2020, is expected to be $66,000. The company wants to maintain a minimum cash balance of $55,000. Question 1 of 1 0.5/1 (a) 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 $ 55000 $ 0 December 105600 70400 January 198000 118800 February 220000 Total collections $ 358600 $ 409200 Question 1 of 1 0.5 / 1 III Expected Payments for Direct Materials January February December 44000 $ 0 January 79200 52800 February 82500 Total payments 123200 $ 135300 e Textbook and Media Attempts: 1 of 3 used Question 1 of 1 0.5/1 Prepare a cash budget for January and February in columnar form. COLTER COMPANY Cash Budget For the Two Months Ending February 28, 2020 January Beginning Cash Balance 66000 INT Add V Cash Dividend Notes Receivable Borrowings hannon e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer Prepare a cash budget for January and February in columnar form. COLTER COMPANY Cash Budget For the Two Months Ending February 28, 2020 January February 66000 56100 Dividend e Textbook and Media Save for Later Attempts: 0 of 3 used Submit