Sunland Company prepares monthly cash budgets. Relevant data from operating budgets for 2022 are as follows January February Sales $338.400 $376,000 112,800 117.500 84,600 94,000 Direct materials purchases Direct labor Manufacturing overhead Selling and administrative expenses 65,800 70,500 74,260 79,900 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 $940 of depreciation per month Other data: 1. 2 3. Credit sales: November 2021, $235,000; December 2021. $300,800. Purchases of direct materials: December 2021. $94,000 Other receipts: January-Collection of December 31, 2021, notes receivable $14,100; February--Proceeds from sale of securities $5,640 Other disbursements February-Payment of $5,640 cash dividend. 4. The company's cash balance on January 1, 2022 is expected to be $56,400. The company wants to maintain a minimum cash balance of $47.000 For the Two Months Ending February 28, 2022 January February November $ 47000 $ i December 90240 60160 January 169200 101520 February 188000 Total collections $ 306440 $ 349680 SUNLANDCOMPANY Schedule of Expected Payments for Direct Materials For the Two Months Ending February 28, 2022 January February December 37600 i January 67680 45120 February i 70500 Total payments $ 105280 $ 115620 Cash Budget For the Two Months Ending February 28,2022 January February 1 Balance 56,400 $ 47,940 Receipts om Customers 306440 349680 able 14100 0 ties 0 5640 5 320540 355320 Cash 376940 403260 Disbursements als 1052801 115620 84600 i 94000 Overhead 65800 70500 Iministrative Expenses 73320 i 78960 lisbursements 105280 i 115620 84600 94000 70500 65800 i Overhead i ninistrative Expenses 73320 78960 0 5640 i ments 329000 364720 i cyl of Available Cash Over Cash Disbursements 47940 109040 orrowings 0 epayments ance 47940 109040 e Textbook and Media Save for Later Attempts: 2 of 5 used Submit