U Points Question 2 of 2 Nigh Company prepares monthly cash budgets. Relevant data from operating budgets for 2015 are as follows: January February $350000 $400000 Sales Direct materials purchases 120000 1100000 Direct labour 85000 115000 Manufacturing overhead 60000 75000 Selling and administrative expenses 75000 80000 All sales are on account. The company expects collections to be 60% in the month of sale, 30% in the first month following the sale, and 10% in the second month following the sale. It pays 30% of direct materials purchases in cash in the month of purchase and the balance due in the month following the purchase. It pays all other items above in the month incurred. Depreciation has been excluded from manufacturing overhead and selling and administrative expenses. Other data: 1. Credit sales: November 2012, $200,000; December 2015, $280000 2. Purchases of direct materials: December 2015, $90000 3. Other receipts: January-collection of December 31, 2015, interest receivable, $3000; February-proceeds from sale of securities, $5000 4. Other disbursements: February-payment of $20000 cash for land 5. The companys cash balance on January 1, 2016, is expected to be $50000. The company wants to keep a minimum cash balance of $40000. Prepare the schedule of expected collections from customers by month and in total. Use no commas, no decimals, use $0 if no amount is collected in that month. January February Total November December January February Total

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