CULATOR | | FULLSCREEN PR?NTER VERSION «BACK Problem 9-4A (Part Level Submission

Question

CULATOR | | FULLSCREEN PR?NTER VERSION «BACK Problem 9-4A (Part Level Submission) Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows: January February Sales $405,360$450,400 135.120 140,750 112,600 84,450 95,710 Direct materials purchases Direct labor Manufacturing overhead Selling and administrative expenses 101,340 78,820 88,954 All sales are on account. Collections are expectedto be 50% in the month of s e 30% n the irst mort following the sale a 20% in t e se d ng hea percent 60 % of direct materials purchases are paid in cash in the month of purchase an paid in the month Incurred exceot for selling and administrative expenses that include $1,126 of deprediation per month. Other data: d the balance due is paid in the month following the purchase. All other itemsa bove a 1. Credit sales: November 2016, $281,500; December 2016, $360.320. 2. Purchases of direct materials: December 2016, $112,600. Other receipts: January-Collection of December 31, 2016, notes recelvable $16,890 February-Proceeds from sale of securities $6,756 4. Other disbursements: February-Payment of $6,756 cash dividend The company's cash balance on January 1, 2017, is expected to be s67,560. The company wants to maintain a minimum cash balance of s56,300 v (a) Prepare schedules for (1) expected collections from oustomers and (2) expected payments for direct materials purchases for January and February ers and (2) expected payments for direct materials purchases for January and February, ugen/shared/assignment/test/aglistun Tid 11:10 444/20 search

Explanation / Answer

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EXPECTED COLLECTIONS FROM CUSTOMERS JAN FEB NOV 56300    [281500*.20] DEC 108096   [360320*.30] 72064    [360320*.20] JAN 202680   [405360*.50] 121608   [405360*.30] FEB 225200 [450400*.50] TOTAL 367076 418872

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