Question 8 of 18 - / 4.5 Crane Company prepares monthly cash budgets. Relevant data from operating budgets for 2022 are as follows. Sales January February $295,200 $328,000 98,400 102,500 73,800 82,000 Direct materials purchases Direct labor Manufacturing overhead Selling and administrative expenses 57,400 61.500 64,780 69,700 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 $820 of depreciation per month. Other data: 1. 2. 3. Credit sales: November 2021. $205,000: December 2021. $262.400. Purchases of direct materials: December 2021, $82,000. Other receipts: January-Collection of December 31, 2021, notes receivable $12,300: February-Proceeds from sale of securities $4.920 Other disbursements: February-Payment of $4.920 cash dividend. 4. The company's cash balance on January 1, 2022, is expected to be $49.200. The company wants to maintain a minimum cash balance of $41.000. 1C Question 8 of 18 - / 4.5 Crane Company prepares monthly cash budgets. Relevant data from operating budgets for 2022 are as follows. Sales January February $295,200 $328,000 98,400 102,500 73,800 82,000 Direct materials purchases Direct labor Manufacturing overhead Selling and administrative expenses 57,400 61.500 64,780 69,700 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 $820 of depreciation per month. Other data: 1. 2. 3. Credit sales: November 2021. $205,000: December 2021. $262.400. Purchases of direct materials: December 2021, $82,000. Other receipts: January-Collection of December 31, 2021, notes receivable $12,300: February-Proceeds from sale of securities $4.920 Other disbursements: February-Payment of $4.920 cash dividend. 4. The company's cash balance on January 1, 2022, is expected to be $49.200. The company wants to maintain a minimum cash balance of $41.000. 1C