PRINTER VERSION NEXT Problem 13-4 Concord Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows: January February Sales $427,680 $475,200 Direct materials purchases 142,560 148,500 Direct labor 106,920 118,800 Manufacturing overhead 83,160 89,100 Selling and administrative expenses 93,852 100,980 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 $1,188 of depreciation per month Other data: 1. 2. 3. Credit sales: November 2016, $297,000; December 2016, $380,160. Purchases of direct materials: December 2016, $118,800. Other receipts: January-Collection of December 31, 2016. notes receivable $17,820; February-Proceeds from sale of securities $7.128. Other disbursements: February--Payment of $7,128 cash dividend. 4. The company's cash balance on January 1, 2017, is expected to be $71,280. The company wants to maintain a minimum cash balance of $59,400. 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 Payments for Direct Materials February January December January February Total payments $ CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Prepare a cash budget for January and February in columnar form. (Do not leave any answer field blank. Enter o for amounts.) CONCORD COMPANY Cash Budget January February > v