Sheffield Company prepares monthly cash budgets. Relevant data from operating budgets for $2025$ are as follows. Your answer is correct.

Prepare schedules for $(1)$ expected collections from customers and $(2)$ expected payments for direct materials purchases for

January and February.

SHEFFIELD COMPANY

Schedule of Expected Collections from Customers

For the Two Months Ending February $28,2025$

SHEFFIELD COMPANY

Schedule of Expected Payments for Direct Materials

For the Two Months Ending February $28,2025$

eTextbook and Media Prepare a cash budget for January and February in columnar form.

January

Febr

$$

$$

$

$

$]$

eTextbook and Media

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 $$1,300$ of depreciation per month.

Other data:

Credit sales: November $2024,$ $$325,000$; December $2024,$ $$416,000.$

Purchases of direct materials: December $2024,$$$130,000.$

Other receipts: January$-$Collection of December $31,2024,$ notes receivable $$19,500$;

February$-$Proceeds from sale of securities $$7,800.$

Other disbursements: February$-$Payment of $$7,800$ cash dividend.

The company's cash balance on January $1,2025,$ is expected to be $$78,000.$ The company wants to maintain a minimum cash balance

of $$65,000.$