Wildhorse Company prepares monthly cash budgets. Relevant data from operating budgets for 2022 are as follows. January February Sales $468,000 $520,000 Direct materials purchases 156,000 162,500 Direct labor 117,000 130,000 Manufacturing overhead 91,000 97,500 Selling and administrative expenses 102,700 110,500 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: 1. Credit sales: November 2021, $325,000; December 2021, $416,000. 2. 3. 4. Purchases of direct materials: December 2021, $130,000. Other receipts: January-Collection of December 31, 2021, 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, 2022, is expected to be $78,000. The company wants to maintain a minimum cash balance of $65,000. (a) Your answer is correct. Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February The company's cash balance on January 1, 2022, is expected to be $78,000. The company wants to maintain a minimum cash balance of $65,000. (a) Your answer is correct. Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February. Expected Collections from Customers January November $ December January February 65000 124800 February 83200 234000 140400 Total collections $ 423800 December January February Expected Payments for Direct Materials January 52000 93600 Total payments 145600 +A February 260000 483600 0 62400 97500 159900 Prepare a cash budget for January and February in columnar form. Question 3 of 4 < > Beginning Cash Balance Add Receipts Collections from Customers Sale of Securities Notes Receivable Total Receipts Total Available Cash Less Disbursements Direct Materials Direct Labor Manufacturing Overhead Selling and Administrative Expenses Cash Dividend Total Disbursements Excess (Deficiency) of Available Cash Over Cash Disbursements Financing Add : Borrowings Less Repayments Ending Cash Balance +A January 9.43 / 12 = Februa +A $ 78000 234000 19200 436480 513280 143360 115200 89600 448000 +A +A $