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nd Company prepares monthly cash budgets. Relevant data from operating budgets January February es $338,400 $376,000 rect materials purchases 112,800 117,500 rect lahor 84.600 DA 000

nd Company prepares monthly cash budgets. Relevant data from operating budgets January February es $338,400 $376,000 rect materials purchases 112,800 117,500 rect lahor 84.600 DA 000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 9 

3. Sunland Comparny prepares monthly cash budgets. Relevant data from operating budgets for 2022 are as follows. January February $338,400 000' Direct materials purchases 009 70,500 Direct labor 0006 Manufacturing overhead Selling and administrative expenses 74,260 006'6L 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. the second month following the sale. Sixty percent (60%) of direct materials purchases are paid in cash in the month of purchase the balance due is paid in the month following the purchase. All other items above are paid in the month incurred except for selli. administrative expenses that include $940 of depreciation per month. Other data: 1. Credit sales: November 2021,5235,000; December 2021,$300,800. 2. Purchases of direct materials: December 2021, $94,000. Other receipts: January-Collection of December 31,2021, notes receivable $14,1003, February-Proceeds from sale of securities $5,640. Other disbursements: February-Payment of $5,640 cash dividend. 4. The company's cash balance on January 1, 2022, is expected to be $56,400. The company wants to maintain a minimum cash balance of $47.000. Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February. SUNLAND COMPANY Schedule of Expected Collections from Customers Arenue Arenuq November Total collerniora
Transcribed Image Text:3. Sunland Comparny prepares monthly cash budgets. Relevant data from operating budgets for 2022 are as follows. January February $338,400 000' Direct materials purchases 009 70,500 Direct labor 0006 Manufacturing overhead Selling and administrative expenses 74,260 006'6L 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. the second month following the sale. Sixty percent (60%) of direct materials purchases are paid in cash in the month of purchase the balance due is paid in the month following the purchase. All other items above are paid in the month incurred except for selli. administrative expenses that include $940 of depreciation per month. Other data: 1. Credit sales: November 2021,5235,000; December 2021,$300,800. 2. Purchases of direct materials: December 2021, $94,000. Other receipts: January-Collection of December 31,2021, notes receivable $14,1003, February-Proceeds from sale of securities $5,640. Other disbursements: February-Payment of $5,640 cash dividend. 4. The company's cash balance on January 1, 2022, is expected to be $56,400. The company wants to maintain a minimum cash balance of $47.000. Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February. SUNLAND COMPANY Schedule of Expected Collections from Customers Arenue Arenuq November Total collerniora
%24 %24 %24 %24 %24 %24 (e) Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purch January and February. SUNLAND COMPANY Schedule of Expected Collections from Customers January February November December January February Total collections SUNLANDCOMPANY Schedule of Expected Payments for Direct Materlals January February December January February Total payments eTextbook and Media Attempts Save for Later
Transcribed Image Text:%24 %24 %24 %24 %24 %24 (e) Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purch January and February. SUNLAND COMPANY Schedule of Expected Collections from Customers January February November December January February Total collections SUNLANDCOMPANY Schedule of Expected Payments for Direct Materlals January February December January February Total payments eTextbook and Media Attempts Save for Later
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