Problem 21-4A Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows January _February Sales Direct materials purchases Direct labor $426,240 142,080 105,560 82,880 93,536 $473,600 148,000 118,400 83,800 100,640 Selling and administrative expenses All sales are on account Collections are expected to be 50% in the month of sale, 30% in the st month following the sale and 20% in the second month following the sale Sixty percent 60% of direct materials purchases purchase, and the balance due is paid in the month folowing the purchase. All other items above are paid in the month incurred except for selling and administrative expenses that include $1,184 of depreclation per month. Other data 1. Credit sales: November 2016, $296,000; December 2016, 378,880 2. Purchases of direct materias: December 2016, $118,400 3. Other rece pts: JanuarY-Collection of December 31, 2016, notes receivable $17,760 e paid in cash in the month of February-Proceeds from sale of securities $7,104 4. Other disbursements: February Payment of $7,104 cash dividend The company’s cash balance on January 1, 2017, is expected to be $71,040. The company wants to maintain a minimum cash balance of $59,200 Prepare schedules for(1) expected collections from customers and (2) expected payments for direct materials purchases for January and February JanuaryFebruary November January Februany Total collections an Febru January February Total payments s
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