Problem 9-4A January February Warning Don\'t show me this message again for the

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Problem 9-4A

January

February

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Expected Collections from Customers

January

February

Expected Payments for Direct Materials

January

February

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January

February

Beginning Cash Balance_

Collection from cutomers

    Selling and Administrative Expenses  

Excess (Deficiency) of Available Cash

Please help

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Problem 9-4A

Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows:

January

February

Sales $400,320 $444,800 Direct materials purchases 133,440 139,000 Direct labor 100,080 111,200 Manufacturing overhead 77,840 83,400 Selling and administrative expenses 87,848 94,520
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 $1,112 of depreciation per month.

Other data:
1. Credit sales: November 2016, $278,000; December 2016, $355,840. 2. Purchases of direct materials: December 2016, $111,200. 3. Other receipts: January—Collection of December 31, 2016, notes receivable $16,680;                       February—Proceeds from sale of securities $6,672. 4. Other disbursements: February—Payment of $6,672 cash dividend.
The company’s cash balance on January 1, 2017, is expected to be $66,720. The company wants to maintain a minimum cash balance of $55,600.

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   Your answer is partially correct. Try again. 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

$83400

$0

December

106,752

71168

January

200,160

80,064

February 0 222,400     Total collections $390,312 $373,632

Expected Payments for Direct Materials

January

February

December

$44480

$0

January

80064

53376

February 0 83400     Total payments $124544 $136776

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   Your answer is partially correct. Try again. Prepare a cash budget for January and February in columnar form. (Do not leave any answer field blank. Enter 0 for amounts.)

COLTER COMPANY
Cash Budget
February 28, 2017For the Two Months Ending February 28, 2017For the Quarter Ending February 28, 2017EAT_1415708799067_1_2642067603032325

January

February

Beginning Cash Balance_

$66720 $84512

Add Receipts

Collection from cutomers

390312

373,632

  Notes Receifd

16680

0

  Sale of Securities    

406992 380304

     Total Receipts   

406992 380304

Total Available

473712 464816 Less Disbursements

        Direct Materials   

124544

136776

   Direct Labor   

100080

111200

       Manufacturing Overhead    

77840

83400

    Selling and Administrative Expenses  

86736

93408

        Disbursements    

6672

           Total Disbursements    

389200 431456

Excess (Deficiency) of Available Cash

84512

33360

Financing

AddLess

0

0

:

0 0 $84,512 $33,360

Please help

  

Explanation / Answer

Ans 1 Expected Collection from Customers Jan Feb November              55,600.00                                -   December          1,06,752.00                 71,168.00 January          2,00,160.00             1,20,096.00 February                             -               2,22,400.00 Total Collection          3,62,512.00             4,13,664.00 Ans 2 Expected Payment for Direct Materials Jan Feb December              44,480.00 January              80,064.00                 53,376.00 February                             -                   83,400.00 Total Collection          1,24,544.00             1,36,776.00 Ans 3 Jan Feb Beginning Cash Balance              66,720.00                 84,512.00 Add Receipts: Collection from cutomers          3,62,512.00             4,13,664.00 Notes Receivable              16,680.00 Sale of securities                   6,672.00 Total Receipts          3,79,192.00             4,20,336.00 Total Available          4,45,912.00             5,04,848.00 Less Disbursements Direct material          1,24,544.00             1,36,776.00 Direct Labor 1,00,080 111200 Manufacturing overhead              77,840.00 83,400 Selling and administrative expenses 86736 93408 Cash dividend 6672 Total Disbursements          3,89,200.00             4,31,456.00 Total Cash at the end              56,712.00                 73,392.00 Min Cash required              55,600.00                 55,600.00 Excess (Deficiency) of Available Cash                1,112.00                 17,792.00 Financing                             -                                  -

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