Question 2: Assume that Pures Coffee prepares monthly cash budgets. Relevant data from assumed operating budgets for 2022 are: Pures sells its coffee in shops on campus, as well as to local stores. Collections are expected to be 60% in the month of sale, and 25% in the month following sale. Pures pays 80% of direct materials purchases in cash in the month of purchase, and the balance due in the month following the purchase. All other items above are paid in the month incurred. (Depreciation has been excluded from manufacturing overhead and selling and administrative expenses.) Other data: (1) Sales: December 2021, $320,000 (2) Purchases of direct materials: December 2021, $175,000 (3) Other receipts: January-Donation received, $2,000 February-Sale of used equipment, $4,000 (4) Other disbursements: February-Purchased equipment, $10,000 (5) Repaid debt: January, $30,000 The company's cash balance on January 1,2022 , is expected to be $50,000. The company wants to maintain a minimum cash balance of $45,000. a. Prepare a schedule for cash collection from customers for January and February [2 marks] b. Prepare a schedule for expected payments for direct materials purchases for January and February. [2 Marks] c. Prepare a cash budget for January and February. [6 Marks] Question 2: Assume that Pures Coffee prepares monthly cash budgets. Relevant data from assumed operating budgets for 2022 are: Pures sells its coffee in shops on campus, as well as to local stores. Collections are expected to be 60% in the month of sale, and 25% in the month following sale. Pures pays 80% of direct materials purchases in cash in the month of purchase, and the balance due in the month following the purchase. All other items above are paid in the month incurred. (Depreciation has been excluded from manufacturing overhead and selling and administrative expenses.) Other data: (1) Sales: December 2021, $320,000 (2) Purchases of direct materials: December 2021, $175,000 (3) Other receipts: January-Donation received, $2,000 February-Sale of used equipment, $4,000 (4) Other disbursements: February-Purchased equipment, $10,000 (5) Repaid debt: January, $30,000 The company's cash balance on January 1,2022 , is expected to be $50,000. The company wants to maintain a minimum cash balance of $45,000. a. Prepare a schedule for cash collection from customers for January and February [2 marks] b. Prepare a schedule for expected payments for direct materials purchases for January and February. [2 Marks] c. Prepare a cash budget for January and February. [6 Marks]