Question 2
Palabala prepares monthly cash budgets. Relevant data from assumed operating budges
for the first two months of the 2022 are as follows:
			January	February
Sales			$100,000	$150,000
Direct Materials Purchases			$50,000	$60,000
Direct Labour			$20,000	$30,000
Manufacturing Overhead			$10,000	$15,000
Depreciation			$5,000	$3,500
All sales are 50% cash 50% in the month following sale.
All Expenses are paid in the month of sale
Sales for December was $80,000
Direct Materials purchases for December was $40,000
Cash balance on 1st January 2022 was $20,000.
Required:
Prepare the cash budget for the two (2) months January to February 2022.