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Sheffield Company prepares monthly cash budgets. Relevant data from operating budgets for 2 0 2 2 are as follows. All sales are on account. Collections
Sheffield Company prepares monthly cash budgets. Relevant data from operating budgets for are as follows.
All sales are on account. Collections are expected to be in the month of sale, in the first month following the sale, and in
the second month following the sale. Sixty percent 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 $ of depreciation per month.
Other data:
Credit sales: November $; December $
Purchases of direct materials: December $
Other receipts: JanuaryCollection of December notes receivable $;
FebruaryProceeds from sale of securities $
Other disbursements: FebruaryPayment of $ cash dividend.
The company's cash balance on January is expected to be $ The company wants to maintain a minimum cash balance
of $
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