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  3. problem 214a colter company prepares monthly cash budgets relevant data...

Question: problem 214a colter company prepares monthly cash budgets relevant data...

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Problem 21-4A Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows: February Janua Sales 800 $412,000 123,600 128,750 Direct materials purchases 92,700 103,000 Direct labor 72,100 Manufacturing overhead 77,250 87,550 Selling and administrative expenses 81,370 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 incumed except for selling and administrative expenses that include $1,030 of depreciation per month. Other data: 1. Credit sales: November 2016, $257,500; December 2016, $329,600 2. Purchases of direct materials: December 2016, $103,000. 3. other receipts: January-Collection of December 31, 2016, notes receivable $15,450; February-Proceeds from sale of securities $6,180. 4. Other disbursements: February-Payment of $6,180 cash dividend. The companys cash balance on January 1, 2017, is expected to be $61,800 The company wants to maintain a minimum cash balance of $51,500.

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