Problem 22-04A Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. January February Sales $396,000 $440,000 Direct materials purchases 132,000 137,500 Direct labor 99,000 110,000 Manufacturing overhead Selling and administrative expenses 000,רר 82,500 86,900 93,500 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 pe (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 $1,100 of depreciation per month. Other data: Credit sales: November 2019, $275,000; December 2019, $352,000. Purchases of direct materials: December 2019, $110,000. Other receipts: January-Collection of December 31, 2019, notes receivable $16,5003; 1. 2. 3. February-Proceeds from sale of securities $6,600. 4. Other disbursements: February-Payment of $6,600 cash dividend. The company's cash balance on January 1, 2020, is expected to be $66,000. The company wants to maintain a minimum cash balance of $55.000.

Cash budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: Line Item Description September October November Sales $250,000 $300,000 $315,000 Manufacturing costs 150,000 180,000 185,000 Selling and administrative expenses 42,000 48,000 51,000 Capital expenditures     200,000 The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent $50,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in January, and the annual property taxes are paid in December. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following…

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Cash Budget The controller of Stanley Yelnats Inc. asks you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: January February March Sales Manufacturing costs 42,000 $101,000 $121,000 $171,000 52,000 62,000 Selling and administrative expenses Capital expenditures 29,000 33,000 38,000 41,000 The company expects to sell about 15% of its merchandise for cash. Of sales on account, 65% are expected to be collected in full in the month following the sale and the remainder in the following month. Depreciation, Insurance, and property tax expense represent $8,000 of the estimated monthly manufacturing costs. The annual Insurance premium is paid in June, and the annual property taxes are paid in October. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. All selling and administrative expenses are paid in the month incurred.…