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Sweet Acacia Company prepares monthly cash budgets. Relevant data from operating budgets for 2023 are as follows: February $396,000 Sales Direct materials purchases Direct labour
Sweet Acacia Company prepares monthly cash budgets. Relevant data from operating budgets for 2023 are as follows: February $396,000 Sales Direct materials purchases Direct labour Manufacturing overhead Selling and administrative expenses January $349,000 121.000 84,000 60.000 74,000 109,000 114,000 76,000 79,000 All sales are on account, Sweet Acacia 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. $198.000; December 2022. $281,000 2. Purchases of direct materials: December 2022,$91.000 3. Other receipts: January-collection of December 31, 2022, notes receivable $4,000; February-proceeds from sale of securities $7,000 3. Other receipts: January-collection of December 31, 2022. notes receivable $4.000; February--proceeds from sale of securities $7.000 4. Other disbursements: February-payment of $21,000 for land The company expects its cash balance on January 1, 2023. to be $51.000. It wants to maintain a minimum cash balance of $40,000, (a) Prepare schedules for (1) the expected collections from customers Month January February November December January February (2) the expected payments for direct materials purchases. Month January February December $ January February
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