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Sweet Acacia Company prepares monthly cash budgets. Relevant data from operating budgets for 2023 are as follows: January February Sales $349,000 $396,000 Direct materials purchases

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

January

February

Sales

$349,000 $396,000

Direct materials purchases

121,000 109,000

Direct labour

84,000 114,000

Manufacturing overhead

60,000 76,000

Selling and administrative expenses

74,000 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: Januarycollection of December 31, 2022, notes receivable $4,000; Februaryproceeds from sale of securities $7,000
4. Other disbursements: Februarypayment of $21,000 for land

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