Wileyplus 317 bus. ch 7

BUS317 Topic 07 Assignment - Ch 13-14 Question 3 of 4 - / 10 View Policies Current Attempt in Progress Blue Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows: January February Sales $390,960 $434,400 Direct materials purchases 130,320 135,750 Direct labor 97,740 108,600 Manufacturing overhead 76,020 81,450 Selling and administrative expenses 85,794 92,310 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 $1,086 of depreciation per month Other data: 1. Credit sales: November 2016, $271,500; December 2016, $347,520. Purchases of direct materials: December 2016, $108,600. Other receipts: January-Collection of December 31, 2016, notes receivable $16,290; February-Proceeds from sale of securities $6,516. 4. Other disbursements: February-Payment of $6,516 cash dividend. The company's cash balance on January 1, 2017, is expected to be $65,160. The company wants to maintain a minimum cash balance of $54,300 (a) Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February. Expected Collections from Customers January February November December January February Total collections Expected Payments for Direct Materials January February December January February Total payments eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above