A portion of this question is still incorrect. Cash Budget chooses the accounting period For the Quarter Ending February 28, 2022, January February select an opening cash budget item Beginning Cash Balance $enter a dollar amount 73200 $enter a dollar amount 62,220 select between addition and deduction 

Add: select an opening name for section one Receipts to select a cash budget item Collections from Customers enter a dollar amount 397,720 enter a dollar amount 453,840 select a cash budget item Notes Receivable enter a dollar amount 18,300 enter a dollar amount 0 select a cash budget item Sale of Securities to enter a dollar amount 0 enter a dollar amount 7,320 select a closing name for section one to enter a total amount for section one select a summarizing line for the first part Total Available Cash to enter a total amount for the first part 489,220. enter a total amount for the first part of 523,380. select between addition and deduction 

Less: select an opening name for section two Total Disbursements select a cash budget item Direct Materials enter a dollar amount 136,640. enter a dollar amount 150,060 select a cash budget item Direct Labor enter a dollar amount 109,800 enter a dollar amount 122,000 select a cash budget item Manufacturing Overhead to enter a dollar amount 85,400 enter a dollar amount 91,500 select a cash budget item Selling and Administrative Expenses enter a dollar amount 95,160 enter a dollar amount 102,480 select a cash budget item Cash Dividend enter a dollar amount 0 enter a dollar amount 7,320 select a closing name for section two Total Disbursements enter a total amount for section two 427,000 enter a total amount for section two 473,360 select a summarizing line for the second part Excess (Deficiency) of Available Cash Over Cash Disbursements enter a total amount for the second part 62,220. enter a total amount for the second part 50,020.00 select an opening name for section three select between addition and deduction 

Add: select a cash budget item Borrowings to enter a dollar amount 10,890.00 select between addition and deduction 

Less: select a cash budget item to enter a dollar amount 0 enter a dollar amount 1 select a closing cash budget item Ending Cash Balance $enter a total amount for the cash budget 62,220 $enter a total amount for the cash budget 61,000. Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. January February Sales $439,200 $488,000 Direct materials purchases 146,400 152,500 Direct labor 109,800 122,000 Manufacturing overhead 85,400 91,500 Selling and administrative expenses 96,380 103,700 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 $1,220 of depreciation per month. 

Other data: 

1. Credit sales: November 2019, $305,000; December 2019, $390,400. 

2. Purchases of direct materials: December 2019, $122,000. 

3. Other receipts: January—Collection of December 31, 2019, notes receivable $18,300; February—Proceeds from the sale of securities $7,320. 

4. Other disbursements: February—Payment of $7,320 cash dividend. The company’s cash balance on January 1, 2020, is expected to be $73,200. 

The company wants to maintain a minimum cash balance of $61,000. 

1- Prepare schedules for (1) expected collections from customers and  (2) expected payments for direct materials purchases for January and February. 

2- Prepare a cash budget for January and February in columnar form.

Answer rating: 100% (QA)

1 Coller Company Expected Collections from Customers For the Months of January and February 2020 Mon... View the full answer