Question

STANDARD VEEW CES PRINTER VERSsiON BACK NEXT Problem 13-4 (Part Level Submission) Sheffield Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows: January February Sales $381,600 $424,000 Direct materials purchases 127,200 132,500 Direct labor 95,400 106,000 Manufacturing overhead Selling and administrative expenses 79,500 74,200 83,740 90,100 dy All sales are on account. Collections are explected 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 $1,060 of depreciation per month. Other data: Credit sales: November 2016, $265,000; December 2016, $339,200- 14 Purchases of direct materials: December 2016, $106,000 2. Other receipts: January-Collection of December 31, 2016, notes receivable $15,900 3. February-Proceeds from sale of securities $6,360. Other disbursements: February-Payment of $6,360 cash dividend 4. The company's cash balance on January 1, 2017, is exxpected to be $63,600. The company wants to maintain a minmum cash baiance of $53,000

Answer 1

1) Expected Cash collection

	January	February
November	53000
December	101760	67840
January	190800	114480
February		212000
Total Cash collection	345560	394320

2) Expected Cash payment

	January	February
December	42400
January	76320	50880
February		79500
Total Cash payment	118720	130380