WileyPLUS x\\e Accounting question IC c Secure | https:/ r.uni WileyPLUS Woygand

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WileyPLUS xe Accounting question IC c Secure | https:/ r.uni WileyPLUS Woygandi, Accounting Principles, 12 Accounting Principles I & II (BU 155 156) Home Read, Study&Practice; Gradebok ORION Downloadable eTextbook AssianmantOpen Assignment ASSIGNMENT RESOURCES Problem 23-4A Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows onu 367,920 122,640 91,980 71,540 80,739 409,800 127,750 102,200 6,650 86,870 Sales Direct materials purchases Direct labor Obiective Manufacturing overhead Selling and administrative expenses 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 $1,022 of depreciation per month Other data: Credit sales: November 2010, $255,500; December 2016, $327,040 2. Purchases of direct materials: December 2016, $102,200 1 3. Other receipts: January-Collection of December 31, 2016, notes receivable $15,330 February-Proceeds from sale of securities $6,132 4. Other disbursements: February-Payment of $6,132 cash dividend The company's cash balance on January 1, 2017, is expected to be s61,320. The company wants to maintain a minimum cash balance of 51,100 Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February Expected Collections from Customers All Rights Reserved. A Division of Version 4,24.2.4 - Type here to search 11/16/2017

Explanation / Answer

Expected Collections from Customers January February November $51,100 $0 December $98,112 $65,408 January $183,960 $110,376 February $0 $204,400 Total Collections $333,172 $380,184 Expected Payments for Direct Materials January February December $40,880 $0 January $73,584 $49,056 February $0 $76,650 Total payments $114,464 $125,706 COLTER COMPANY Cash Budget For January and February January February Beginning Cash Balance $51,100 $51,100 Add: Cash Receipts      Collection from Customers $333,172 $380,184      Redemption of Note Receivable $15,330 $0      Proceeds from sale of securities $0 $6,132 Total Cash Receipts $348,502 $386,316 Total Cash Available $399,602 $437,416 Less: Cash disbursements      Cash Paid to supplier $114,464 $125,706      Direct Labor Payments $91,980 $102,200      Manufacturing Overhead $71,540 $76,650      Selling and Admin expenses $79,716 $85,848      Cash Dividend $6,132 Total Cash Payments $357,700 $396,536 Cash Balance $41,902 $40,880 Borrowing (Repayments) $9,198 $10,220 Ending Cash Balance $51,100 $51,100

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