Colter company prepares monthly cash budgets relevant data

Reference no: EM13392990

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.

Reference no: EM13392990

Questions Cloud

Describe securitization process as it associates to housing : 1 explain the securitization process as it relates to the housing market. what is the rationale for the establishment

At what point could communication about the project become : you are completing your project planning activities for the project you have been assigned to manage. the remaining

Gen following information answer following questions tr : given the following information answer the following questions tr 3q tc 1500 2q a. what is the break-even level of

Develop a proposal for a qualitative and or quantitative : the marketing research proposal distills the essence of the project and serves as a contract between the researcher and

Colter company prepares monthly cash budgets relevant data : colter company prepares monthly cash budgets. relevant data from operating budgets for 2014

Genaro needs to capture a return of 40 percent for his : 1.genaro needs to capture a return of 40 percent for his one-year investment in a property. he believes that he can

Post at least 5 paragraphs which list skills that are : you are the manager of the production department and the project manager will come from your group. this will be a

Analyze the needs and motivation of the target market what : you are a marketing manager for a health and beauty organization and need to market a new brand of toothpaste that fits

Determine the total production for larger economy in which : consider two competitive economies that have the same quantities of labor l 400 and capital k 400 and the same

User Account

All Pages