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.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Avalable until Apr 25 at 11pm
, Accounting, 7e
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CALCULATOR
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Problem 22-04A
Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows.
January
$396,000
February
$440,000
Sales
Direct materials purchases
132,000
137,500
Direct labor
99,000
110,000
Manufacturing overhead
Selling and administrative expenses
000,ר7
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 pen
(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 $16,500;
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.
Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February.
Expected Collections from Customers
February
January
November
December
January
February
Total collections
Transcribed Image Text:Submitting an external tol Attempts 1 Allowed Attempts 1 Avalable until Apr 25 at 11pm , Accounting, 7e ystem Announcements CALCULATOR PRINTER VERSION BACK Problem 22-04A Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. January $396,000 February $440,000 Sales Direct materials purchases 132,000 137,500 Direct labor 99,000 110,000 Manufacturing overhead Selling and administrative expenses 000,ר7 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 pen (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 $16,500; 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. Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February. Expected Collections from Customers February January November December January February Total collections
Expected Luectiuna rum Cualuer
Semuary
Fahruary
Novambar
導
December
January
Fubruary
Tetal collections
Expected Paymants for DirKI LI Maturiala
Pabruary
January
December
January
February
Tetal payments
Prepare a cash budget for January and February in columnar form.
COLTER COMPANY
Cash Budget
January
February
ΣΣ
>>>> > >
Transcribed Image Text:Expected Luectiuna rum Cualuer Semuary Fahruary Novambar 導 December January Fubruary Tetal collections Expected Paymants for DirKI LI Maturiala Pabruary January December January February Tetal payments Prepare a cash budget for January and February in columnar form. COLTER COMPANY Cash Budget January February ΣΣ >>>> > >
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