Haas Company prepares monthly cash budgets. Relevant data from operating budgets for 2011 are:

______________________JanuaryFebruary

Sales....................................$355,200..................$408,700

Direct materials purchases............114,400....................133,600

Direct labor.................................91,900....................108,100

Manufacturing overhead.................72,400......................80,200

Selling and administrative expenses 80,700.....................89,800

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 $1,500 of depreciation per month.

Other data:

1. Credit sales: November 2010, $268,600; December 2010, $321,100.

2. Purchases of direct materials: December 2010, $106,300.

3. Other receipts: January-Collection of December 31, 2010, notes receivable $17,600; February-Proceeds from sale of securities $8,340.

4. Other disbursements: February-Withdrawal of $8,460 cash for personal use of owner, Dewey Yaeger.

The company's cash balance on January 1, 2011, is expected to be $72,920. The company wants to maintain a minimum cash balance of $51,030.

Incorrect.

Complete the schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases. (If answer is zero, please enter 0, do not leave any fields blank.)

Expected Collections from Customers

______________________January February

November.....................$....................................$ 0

December......................................................

January........................................................

February......................................................

Total collections...........................................$

Expected Payments for Direct Materials

______________________January February

November.....................$....................................$ 0

December......................................................

January........................................................

February......................................................

Total collections...............$............................$

Incorrect.

Complete the cash budget for January and February in columnar form. (List multiple entries from largest to smallest amounts, e.g. 10, 5, 1 for the January amounts.)

HAAS COMPANY

Cash Budget

For the Two Months Ending February 28, 2011

__________________________JanuaryFebruary

Beginning cash balance..................$..................................$

Add: Receipts

Collections from customers

Notes receivable 0

Sale of securities 0

Total receipts

Total available cash

Less: Disbursements

Direct materials

Direct labor

Borrowings Repayments Collections from customers selling and administrative expenses Direct labor Notes receivable Sale of securities Withdrawal by owner Manufacturing overhead direct materials

Selling and administrative expenses Withdrawal by owner Manufacturing overhead Borrowings Repayments Collections from customers Notes receivable Sale of securities Direct materials Direct labor

Withdrawal by owner 0

Total disbursements

Excess (deficiency) of available cash over cash disbursements

Financing

Borrowings 0

Repayments 0

Ending cash balance $ $