Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2014 are:JanuarySalesDirect materials purchasesDirect laborManufacturing overheadSelling and administrative expenses$381,850120,01098,19076,37086,189February$436,400141,830109,10081,82593,826All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the firstmonth following the sale, and 20% in the second month following the sale. Sixty percent (60%) ofdirect materials purchases are paid in cash in the month of purchase, and the balance due is paid inthe month following the purchase. All other items above are paid in the month incurred except forselling and administrative expenses that include $1,091 of depreciation per month.Other data:1.2.3.Credit sales: November 2013, $283,660; December 2013, $349,120.Purchases of direct materials: December 2013, $109,100.Other receipts: January—Collection of December 31, 2013, notes receivable $16,365;February—Proceeds from sale of securities $6,546.4.Other disbursements: February—Payment of $5,455 cash dividend.The company’s cash balance on January 1, 2014, is expected to be $65,460. The company wants tomaintain a minimum cash balance of $54,550.Prepare schedules for (1) expected collections from customers and (2) expected payments for directmaterials purchases.Expected Collections from CustomersJanuaryFebruary$$NovemberDecemberJanuaryFebruaryTotal collections$$Expected Payments for Direct MaterialsJanuaryFebruary$$DecemberJanuaryFebruaryTotal payments$$Prepare a cash budget for January and February in columnar form.COLTER COMPANYCash BudgetFor the Two Months Ending February 28, 2014January$::February$::$$
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more