Sandhill Company prepares monthly cash budgets. Relevant data from operating budgets for 2022 are as follows. January February Sales $352,800 $392.000 117,600 122,500 88,200 98,000 Direct materials purchases Direct labor Manufacturing overhead Selling and administrative expenses 68,600 73,500 77.420 83,300 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 $980 of depreciation per month. Other data: 1. Credit sales: November 2021. $245,000: December 2021. $313.600. 2 Purchases of direct materials: December 2021. $98.000, 68,600 73,500 Manufacturing overhead Selling and administrative expenses 77,420 83,300 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 $980 of depreciation per month Other data: 1 2. Credit sales: November 2021. $245,000: December 2021.313,600, Purchases of direct materials: December 2021,598,000 Other receipts: January--Collection of December 31, 2021, notes receivable $14,700; February-Proceeds from sale of securities $5,880 Other disbursements: February-Payment of $5,880 cash dividend. 3. 4. The company's cash balance on January 1, 2022 is expected to be $58,800. The company wants to maintain a minimum cash balance of $49.000 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 49000 49000 December 94080 January 176400 February 392000 Total collections $ 711480 $ Expected Payments for Direct Materials Question 3 of 4 15 E Expected Payments for Direct Materials January February December $ 392000 January February Total payments 5 eTextbook and Media Attempts of Sused Sun An Save for th Type here to search o . 19 P SANDHILL COMPANY Cash Budget January Febri Beginning Cash Balance $ Add : Receipts Collections from Customers Notes Receivable Sale of Securities Total Available Cash Less w: Cash Dividend G _ O 4 14 112 797 Total Available Cash Less Cash Dividend Direct Materials > Direct Labor Manufacturing Overhead Selling and Administrative Expenses Cash Dividend Total Disbursements Excess (Deficiency of Available Cash Over Cash Disbursements Question 3 of 4 -/15 III Cash Dividend Total Disbursements Excess (Deficiency) of Available Cash Over Cash Disbursements Financing Borrowing $ $ e Textbook and Media Attempts: 0 of 5 used Submit