Posted: March 6th, 2014
Other data:
1. Credit sales: November 2011, $260,000; December 2011, $320,000.
2. Purchases of direct materials: December 2011, $100,000.
3. Other receipts: January—Collection of December 31, 2011, notes receivable $15,000; February—Proceeds from sale of securities $6,000.
4. Other disbursements: February—Withdrawal of $5,000 cash for personal use of owner,
Nick Haniwall.
The company’s cash balance on January 1, 2012, is expected to be $60,000. The company wants to maintain a minimum cash balance of $50,000.
Instructions
(a) Prepare schedules for
(1) Expected collections from customers and
(2) Expected payments for direct materials purchases.
(b) Prepare a cash budget for January and February in columnar form.
Place an order in 3 easy steps. Takes less than 5 mins.