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Problem 23-4A Colter Company_Cash Budget

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Question;Problem 23-4A;Colter Company prepares;monthly cash budgets. Relevant data from operating budgets for 2014 are;January;February;Sales;$349,600;$399,900;Direct materials;purchases;110,700;130,700;Direct labor;89,820;100,610;Manufacturing overhead;69,990;74,910;Selling and;administrative expenses;79,280;85,630;All sales are on account. Collections are expected to be 49% in the month;of sale, 30% in the first month following the sale, and 21% 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;$1,400 of depreciation per month.;Other data;1.;Credit sales: November;2013, $250,600, December 2013, $318,900.;2.;Purchases of direct;materials: December 2013, $100,900.;3.;Other receipts;January?Collection of December 31, 2013, notes receivable $15,260;February?Proceeds from sale of securities $6,950.;4.;Other disbursements;February?payment of $5,110 cash dividend.;The company?s cash balance on January 1, 2014, is expected to be $60,300. The;company wants to maintain a minimum cash balance of $48,600.;Prepare schedules for;expected collections from customers and expected payments for direct materials;purchases for January and February.;Prepare a cash budget;for January and February.

 

Paper#37325 | Written in 18-Jul-2015

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