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(Solved): Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as ...




Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows.
All sales are on
Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for Ja
Dranwa s mach hustont for lantarv and Fohruarvin columnar form.
Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. 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 \( \$ 1,010 \) of depreciation per month. Other data: 1. Credit sales: November 2019,\$252,500; December 2019,\$323,200. 2. Purchases of direct materials: December 2019,\$101,000. 3. Other receipts: January-Collection of December 31, 2019, notes receivable \( \$ 15,150 \); February-Proceeds from sale of securities \( \$ 6,060 \). 4. Other disbursements: February-Payment of \( \$ 6,060 \) cash dividend. The company's cash balance on January 1,2020 , is expected to be \( \$ 60,600 \). The company wants to maintain a minimum cash balance of \( \$ 50,500 \). Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February. Dranwa s mach hustont for lantarv and Fohruarvin columnar form.


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Schedule of expected collections from customers for Colter company is prepared below - 1.) Expected Collections from Customers Month January February
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