Question

Accounting Help. Pls Multiple Part Question.

Current Attempt in Progress Sunland Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. January February Sales $432,000 Direct materials purchases 135,000 $388,800 129,600 97,200 75,600 Direct labor Manufacturing overhead 108,000 81,000 91,800 Selling and administrative expenses 85,320 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 $1,080 of depreciation per month Other data: 1. Credit sales: November 2019, $270,000; December 2019, $345,600 2. Purchases of direct materials: December 2019. $108,000 3. Other receipts: January-Collection of December 31, 2019, notes receivable $16.200 February--Proceeds from sale of securities $6,480. 4. Other disbursements: February--Payment of $6,480 cash dividend. The company's cash balance on January 1, 2020, is expected to be $64,800. The company wants to maintain a minimum cash balance of $54,000.

Answer 1

a)
Expected Collections from Customers
	January	February
November	$   54,000.00	$                -
December	$ 103,680.00	$   69,120.00
January	$ 194,400.00	$ 116,640.00
February		$ 216,000.00
Total collections	$ 352,080.00	$ 401,760.00
b) Expected Payments for Direct Materials
	January	February
December	$   43,200.00
January	$   77,760.00	$   51,840.00
February		$   81,000.00
Total payments	$ 120,960.00	$ 132,840.00
SUNLAND COMPANY
Cash Budget
For the Two Months Ending February 28, 2020
	January	February
Beginning cash balance	$   64,800.00	$   55,080.00
Add: Receipts
Collections from customers	$ 352,080.00	$ 401,760.00
Notes receivable	$   16,200.00
Sale of securities		$     6,480.00
Total receipts	$ 368,280.00	$ 408,240.00
Total available cash	$ 433,080.00	$ 463,320.00
Less: Disbursements
Direct materials	$ 120,960.00	$ 132,840.00
Direct labor	$   97,200.00	$ 108,000.00
Manufacturing overhead	$   75,600.00	$   81,000.00
Selling and administrative expenses*	$   84,240.00	$   90,720.00
Cash dividend		$     6,480.00
Total disbursements	$ 378,000.00	$ 419,040.00
Excess (deficiency) of available cash over cash disbursements	$   55,080.00	$   44,280.00
Financing
Add:      Borrowings	$                -	$     9,720.00
Less:     Repayments	$                -
Ending cash balance	$   55,080.00	$   54,000.00
*Selling and administrative expenses less $1,080 depreciation.