Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2014 are: Jan

Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2014 are:

January

February Sales $379,400 $433,600 Direct materials purchases 119,240 140,920 Direct labor 97,560 108,400 Manufacturing overhead 75,880 81,300 Selling and administrative expenses 85,636 93,224
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 $1,084 of depreciation per month.

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

Other data:
1. Credit sales: November 2013, $281,840; December 2013, $346,880. 2. Purchases of direct materials: December 2013, $108,400. 3. Other receipts: JanuaryAc€??Collection of December 31, 2013, notes receivable $16,260;                       FebruaryAc€??Proceeds from sale of securities $6,504. 4. Other disbursements: FebruaryAc€??Payment of $5,420 cash dividend.
The companyAc€?cs cash balance on January 1, 2014, is expected to be $65,040. The company wants to maintain a minimum cash balance of $54,200. 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

$

$ December

January

February

    Total collections

$

$

Expected Payments for Direct Materials

January

February December

$

$ January

February

    Total payments

$

$

LINK TO TEXT

LINK TO VIDEO Prepare a cash budget for January and February in columnar form.

COLTER COMPANY
Cash Budget
For the Two Months Ending February 28, 2014

January

February Beginning Cash BalanceBorrowingsCollections from CustomersDirect LaborDirect MaterialsDisbursementsEnding Cash BalanceExcess (Deficiency) of Available Cash Over Cash DisbursementsFinancingManufacturing OverheadNotes ReceivableReceiptsRepaymentsSale of SecuritiesSelling and Administrative ExpensesTotal Available CashTotal DisbursementsTotal ReceiptsCash Dividend

$

$ AddLess: Beginning Cash BalanceBorrowingsCollections from CustomersDirect LaborDirect MaterialsDisbursementsEnding Cash BalanceExcess (Deficiency) of Available Cash Over Cash DisbursementsFinancingManufacturing OverheadNotes ReceivableReceiptsRepaymentsSale of SecuritiesSelling and Administrative ExpensesTotal Available CashTotal DisbursementsTotal ReceiptsCash Dividend Beginning Cash BalanceBorrowingsCollections from CustomersDirect LaborDirect MaterialsDisbursementsEnding Cash BalanceExcess (Deficiency) of Available Cash Over Cash DisbursementsFinancingManufacturing OverheadNotes ReceivableReceiptsRepaymentsSale of SecuritiesSelling and Administrative ExpensesTotal Available CashTotal DisbursementsTotal ReceiptsCash Dividend

Beginning Cash BalanceBorrowingsCollections from CustomersDirect LaborDirect MaterialsDisbursementsEnding Cash BalanceExcess (Deficiency) of Available Cash Over Cash DisbursementsFinancingManufacturing OverheadNotes ReceivableReceiptsRepaymentsSale of SecuritiesSelling and Administrative ExpensesTotal Available CashTotal DisbursementsTotal ReceiptsCash Dividend

Beginning Cash BalanceBorrowingsCollections from CustomersDirect LaborDirect MaterialsDisbursementsEnding Cash BalanceExcess (Deficiency) of Available Cash Over Cash DisbursementsFinancingManufacturing OverheadNotes ReceivableReceiptsRepaymentsSale of SecuritiesSelling and Administrative ExpensesTotal Available CashTotal DisbursementsTotal ReceiptsCash Dividend

Beginning Cash BalanceBorrowingsCollections from CustomersDirect LaborDirect MaterialsDisbursementsEnding Cash BalanceExcess (Deficiency) of Available Cash Over Cash DisbursementsFinancingManufacturing OverheadNotes ReceivableReceiptsRepaymentsSale of SecuritiesSelling and Administrative ExpensesTotal Available CashTotal DisbursementsTotal ReceiptsCash Dividend

Beginning Cash BalanceBorrowingsCollections from CustomersDirect LaborDirect MaterialsDisbursementsEnding Cash BalanceExcess (Deficiency) of Available Cash Over Cash DisbursementsFinancingManufacturing OverheadNotes ReceivableReceiptsRepaymentsSale of SecuritiesSelling and Administrative ExpensesTotal Available CashTotal DisbursementsTotal ReceiptsCash Dividend

AddLess: Beginning Cash BalanceBorrowingsCollections from CustomersDirect LaborDirect MaterialsDisbursementsEnding Cash BalanceExcess (Deficiency) of Available Cash Over Cash DisbursementsFinancingManufacturing OverheadNotes ReceivableReceiptsRepaymentsSale of SecuritiesSelling and Administrative ExpensesTotal Available CashTotal DisbursementsTotal ReceiptsCash Dividend Beginning Cash BalanceBorrowingsCollections from CustomersDirect LaborDirect MaterialsDisbursementsEnding Cash BalanceExcess (Deficiency) of Available Cash Over Cash DisbursementsFinancingManufacturing OverheadNotes ReceivableReceiptsRepaymentsSale of SecuritiesSelling and Administrative ExpensesTotal Available CashTotal DisbursementsTotal ReceiptsCash Dividend

Beginning Cash BalanceBorrowingsCollections from CustomersDirect LaborDirect MaterialsDisbursementsEnding Cash BalanceExcess (Deficiency) of Available Cash Over Cash DisbursementsFinancingManufacturing OverheadNotes ReceivableReceiptsRepaymentsSale of SecuritiesSelling and Administrative ExpensesTotal Available CashTotal DisbursementsTotal ReceiptsCash Dividend

Beginning Cash BalanceBorrowingsCollections from CustomersDirect LaborDirect MaterialsDisbursementsEnding Cash BalanceExcess (Deficiency) of Available Cash Over Cash DisbursementsFinancingManufacturing OverheadNotes ReceivableReceiptsRepaymentsSale of SecuritiesSelling and Administrative ExpensesTotal Available CashTotal DisbursementsTotal ReceiptsCash Dividend

Beginning Cash BalanceBorrowingsCollections from CustomersDirect LaborDirect MaterialsDisbursementsEnding Cash BalanceExcess (Deficiency) of Available Cash Over Cash DisbursementsFinancingManufacturing OverheadNotes ReceivableReceiptsRepaymentsSale of SecuritiesSelling and Administrative ExpensesTotal Available CashTotal DisbursementsTotal ReceiptsCash Dividend

Beginning Cash BalanceBorrowingsCollections from CustomersDirect LaborDirect MaterialsDisbursementsEnding Cash BalanceExcess (Deficiency) of Available Cash Over Cash DisbursementsFinancingManufacturing OverheadNotes ReceivableReceiptsRepaymentsSale of SecuritiesSelling and Administrative ExpensesTotal Available CashTotal DisbursementsTotal ReceiptsCash Dividend

Beginning Cash BalanceBorrowingsCollections from CustomersDirect LaborDirect MaterialsDisbursementsEnding Cash BalanceExcess (Deficiency) of Available Cash Over Cash DisbursementsFinancingManufacturing OverheadNotes ReceivableReceiptsRepaymentsSale of SecuritiesSelling and Administrative ExpensesTotal Available CashTotal DisbursementsTotal ReceiptsCash Dividend

Beginning Cash BalanceBorrowingsCollections from CustomersDirect LaborDirect MaterialsDisbursementsEnding Cash BalanceExcess (Deficiency) of Available Cash Over Cash DisbursementsFinancingManufacturing OverheadNotes ReceivableReceiptsRepaymentsSale of SecuritiesSelling and Administrative ExpensesTotal Available CashTotal DisbursementsTotal ReceiptsCash Dividend

Beginning Cash BalanceBorrowingsCollections from CustomersDirect LaborDirect MaterialsDisbursementsEnding Cash BalanceExcess (Deficiency) of Available Cash Over Cash DisbursementsFinancingManufacturing OverheadNotes ReceivableReceiptsRepaymentsSale of SecuritiesSelling and Administrative ExpensesTotal Available CashTotal DisbursementsTotal ReceiptsCash Dividend AddLess: Beginning Cash BalanceBorrowingsCollections from CustomersDirect LaborDirect MaterialsDisbursementsEnding Cash BalanceExcess (Deficiency) of Available Cash Over Cash DisbursementsFinancingManufacturing OverheadNotes ReceivableReceiptsRepaymentsSale of SecuritiesSelling and Administrative ExpensesTotal Available CashTotal DisbursementsTotal ReceiptsCash Dividend

AddLess: Beginning Cash BalanceBorrowingsCollections from CustomersDirect LaborDirect MaterialsDisbursementsEnding Cash BalanceExcess (Deficiency) of Available Cash Over Cash DisbursementsFinancingManufacturing OverheadNotes ReceivableReceiptsRepaymentsSale of SecuritiesSelling and Administrative ExpensesTotal Available CashTotal DisbursementsTotal ReceiptsCash Dividend

Beginning Cash BalanceBorrowingsCollections from CustomersDirect LaborDirect MaterialsDisbursementsEnding Cash BalanceExcess (Deficiency) of Available Cash Over Cash DisbursementsFinancingManufacturing OverheadNotes ReceivableReceiptsRepaymentsSale of SecuritiesSelling and Administrative ExpensesTotal Available CashTotal DisbursementsTotal ReceiptsCash Dividend

$

$

 

Looking for a Similar Assignment? Let us take care of your classwork while you enjoy your free time! All papers are written from scratch and are 100% Original. Try us today! Use Code FREE15