Sandproof Company prepares monthly cash budgets. Relevant data from operating budgets for 2023 are as follows:

		January		February
Sales		$356,000		$397,000
Direct materials purchases		121,000		111,000
Direct labour		86,000		113,000
Manufacturing overhead		61,000		76,000
Selling and administrative expenses		74,000		79,000

All sales are on account. Sunland 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:

1.	Credit sales: November 2022, $202,000; December 2022, $277,000
2.	Purchases of direct materials: December 2022, $89,000
3.	Other receipts: Januarycollection of December 31, 2022, notes receivable $5,000; Februaryproceeds from sale of securities $6,000
4.	Other disbursements: Februarypayment of $20,000 for land

The company expects its cash balance on January 1, 2023, to be $50,000. It wants to maintain a minimum cash balance of $40,000.

Prepare schedules for (1) the expected collections from customers.

Month			January		February
November			$enter a dollar amount		$enter a dollar amount
December			enter a dollar amount		enter a dollar amount
January			enter a dollar amount		enter a dollar amount
February			enter a dollar amount		enter a dollar amount
			$enter a total amount		$enter a total amount

(2) the expected payments for direct materials purchases.

Month			January		February
December			$enter a dollar amount		$enter a dollar amount
January			enter a dollar amount		enter a dollar amount
February			enter a dollar amount		enter a dollar amount
			$enter a total amount		$enter a total amount

Question Part Score

--/1.5

Prepare a cash budget for January and February using columns for each month.

JK COMPANY Cash Budget For the Two Months Ending February 28, 2023
		Jan		Feb		Total
select an opening cash budget item Direct materialsProceeds from sale of securitiesDisbursementsExcess of cash available over cash disbursementsCash receiptsBorrowingRepaymentDirect labourCollection of notes receivableTotal receiptsEnding cash balanceTotal available cashFinancingTotal disbursementsCollection from credit salesBeginning cash balancePurchase of landManufacturing overheadInterest expensesSelling and administrative expensesTotal financing		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
select between addition and deduction AddLess: select an opening name for section one Selling and administrative expensesCollection of notes receivableCollection from credit salesTotal available cashPurchase of landBorrowingProceeds from sale of securitiesDirect materialsTotal receiptsCash receiptsEnding cash balanceBeginning cash balanceRepaymentTotal disbursementsTotal financingInterest expensesFinancingDirect labourDisbursementsExcess of cash available over cash disbursementsManufacturing overhead
select a cash budget item Collection from credit salesPurchase of landProceeds from sale of securitiesBorrowingTotal receiptsDirect materialsExcess of cash available over cash disbursementsEnding cash balanceBeginning cash balanceTotal disbursementsTotal financingCash receiptsCollection of notes receivableDisbursementsSelling and administrative expensesRepaymentManufacturing overheadInterest expensesFinancingDirect labourTotal available cash		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a cash budget item Total available cashRepaymentManufacturing overheadBorrowingDirect materialsSelling and administrative expensesExcess of cash available over cash disbursementsTotal disbursementsTotal receiptsCollection of notes receivableDisbursementsProceeds from sale of securitiesCollection from credit salesCash receiptsBeginning cash balanceFinancingEnding cash balanceDirect labourPurchase of landInterest expensesTotal financing		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a cash budget item Total disbursementsSelling and administrative expensesCash receiptsFinancingBeginning cash balanceManufacturing overheadDisbursementsBorrowingCollection from credit salesRepaymentInterest expensesEnding cash balanceTotal financingCollection of notes receivablePurchase of landDirect labourProceeds from sale of securitiesExcess of cash available over cash disbursementsDirect materialsTotal available cashTotal receipts		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a closing name for section one BorrowingFinancingTotal receiptsCollection from credit salesBeginning cash balanceInterest expensesManufacturing overheadCollection of notes receivableSelling and administrative expensesTotal available cashDirect materialsDisbursementsTotal disbursementsDirect labourExcess of cash available over cash disbursementsTotal financingRepaymentPurchase of landEnding cash balanceCash receiptsProceeds from sale of securities		enter a total amount for section one		enter a total amount for section one		enter a total amount for section one
select a summarizing line for the first part Total financingDisbursementsManufacturing overheadDirect materialsCash receiptsCollection from credit salesBeginning cash balanceInterest expensesBorrowingExcess of cash available over cash disbursementsTotal disbursementsPurchase of landRepaymentTotal receiptsEnding cash balanceFinancingCollection of notes receivableSelling and administrative expensesTotal available cashDirect labourProceeds from sale of securities		enter a total amount for the first part		enter a total amount for the first part		enter a total amount for the first part
select between addition and deduction AddLess: select an opening name for section two Collection of notes receivableBorrowingFinancingCash receiptsExcess of cash available over cash disbursementsPurchase of landTotal receiptsTotal financingSelling and administrative expensesManufacturing overheadBeginning cash balanceProceeds from sale of securitiesInterest expensesTotal available cashTotal disbursementsDisbursementsCollection from credit salesDirect materialsEnding cash balanceRepaymentDirect labour
select a cash budget item Ending cash balanceInterest expensesTotal receiptsCollection from credit salesDirect labourTotal available cashSelling and administrative expensesProceeds from sale of securitiesTotal financingExcess of cash available over cash disbursementsManufacturing overheadCollection of notes receivableCash receiptsFinancingTotal disbursementsBeginning cash balancePurchase of landRepaymentBorrowingDirect materialsDisbursements		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a cash budget item Interest expensesBorrowingPurchase of landTotal financingRepaymentFinancingCollection of notes receivableExcess of cash available over cash disbursementsCash receiptsBeginning cash balanceDisbursementsTotal disbursementsDirect materialsManufacturing overheadEnding cash balanceSelling and administrative expensesCollection from credit salesTotal receiptsProceeds from sale of securitiesTotal available cashDirect labour		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a cash budget item FinancingPurchase of landTotal disbursementsEnding cash balanceCash receiptsBeginning cash balanceManufacturing overheadRepaymentBorrowingDisbursementsCollection of notes receivableProceeds from sale of securitiesSelling and administrative expensesExcess of cash available over cash disbursementsTotal available cashInterest expensesDirect materialsCollection from credit salesTotal receiptsTotal financingDirect labour		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a cash budget item Collection from credit salesDisbursementsTotal available cashTotal receiptsCash receiptsTotal disbursementsProceeds from sale of securitiesFinancingCollection of notes receivablePurchase of landDirect labourBorrowingManufacturing overheadInterest expensesBeginning cash balanceExcess of cash available over cash disbursementsEnding cash balanceTotal financingRepaymentDirect materialsSelling and administrative expenses		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a cash budget item Total disbursementsRepaymentDirect labourSelling and administrative expensesManufacturing overheadCollection of notes receivableDirect materialsCollection from credit salesTotal financingTotal available cashInterest expensesFinancingProceeds from sale of securitiesEnding cash balanceDisbursementsCash receiptsBorrowingTotal receiptsExcess of cash available over cash disbursementsBeginning cash balancePurchase of land		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a closing name for section two Manufacturing overheadRepaymentEnding cash balanceTotal available cashTotal disbursementsCollection of notes receivableTotal receiptsBorrowingSelling and administrative expensesProceeds from sale of securitiesExcess of cash available over cash disbursementsInterest expensesCash receiptsDirect materialsBeginning cash balanceCollection from credit salesFinancingDisbursementsDirect labourTotal financingPurchase of land		enter a total amount for section two		enter a total amount for section two		enter a total amount for section two
select a summarizing line for the second part FinancingEnding cash balanceCollection of notes receivableCash receiptsBeginning cash balanceTotal available cashExcess of cash available over cash disbursementsPurchase of landTotal receiptsManufacturing overheadSelling and administrative expensesDirect materialsRepaymentProceeds from sale of securitiesTotal disbursementsDisbursementsInterest expensesTotal financingBorrowingCollection from credit salesDirect labour		enter a total amount for the second part		enter a total amount for the second part		enter a total amount for the second part
select an opening name for section three DisbursementsBorrowingDirect materialsBeginning cash balanceFinancingExcess of cash available over cash disbursementsCollection of notes receivableDirect labourTotal receiptsTotal disbursementsCash receiptsInterest expensesTotal financingManufacturing overheadSelling and administrative expensesTotal available cashProceeds from sale of securitiesPurchase of landEnding cash balanceRepaymentCollection from credit sales:
select a cash budget item Collection from credit salesCash receiptsRepaymentSelling and administrative expensesFinancingManufacturing overheadCollection of notes receivableDisbursementsDirect labourProceeds from sale of securitiesTotal receiptsEnding cash balanceExcess of cash available over cash disbursementsTotal available cashBeginning cash balanceInterest expensesBorrowingTotal disbursementsPurchase of landTotal financingDirect materials		enter a dollar amount		enter a dollar amount		enter a dollar amount
select between addition and deduction AddLess: select a cash budget item Direct labourRepaymentTotal financingSelling and administrative expensesCollection from credit salesEnding cash balanceBeginning cash balanceDisbursementsProceeds from sale of securitiesDirect materialsInterest expensesTotal disbursementsTotal available cashManufacturing overheadBorrowingExcess of cash available over cash disbursementsCash receiptsPurchase of landTotal receiptsCollection of notes receivableFinancing		enter a dollar amount		enter a dollar amount		enter a dollar amount
select between addition and deduction AddLess : select a cash budget item Direct materialsExcess of cash available over cash disbursementsTotal financingDirect labourTotal disbursementsEnding cash balanceTotal available cashCash receiptsRepaymentManufacturing overheadCollection of notes receivableSelling and administrative expensesProceeds from sale of securitiesCollection from credit salesFinancingBeginning cash balanceBorrowingInterest expensesPurchase of landDisbursementsTotal receipts		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a closing name for section three Interest expensesTotal receiptsBorrowingManufacturing overheadRepaymentEnding cash balanceDisbursementsDirect labourTotal available cashCash receiptsProceeds from sale of securitiesCollection of notes receivableBeginning cash balanceTotal disbursementsCollection from credit salesPurchase of landExcess of cash available over cash disbursementsFinancingTotal financingDirect materialsSelling and administrative expenses		enter a total amount for section three		enter a total amount for section three		enter a total amount for section three
select a closing cash budget item Excess of cash available over cash disbursementsDirect materialsCollection of notes receivableInterest expensesSelling and administrative expensesCash receiptsFinancingTotal available cashBorrowingDirect labourProceeds from sale of securitiesTotal receiptsCollection from credit salesTotal financingDisbursementsBeginning cash balanceTotal disbursementsEnding cash balancePurchase of landRepaymentManufacturing overhead		$enter a total amount for the cash budget		$enter a total amount for the cash budget		$enter a total amount for the cash budget

Question Part Score

--/2.5