1. Sunland Industries expects credit sales for January, February, and March to be $206,800, $244,400, and $282,000, respectively. It is expected that 75% of the sales will be collected in the month of sale, and 25% will be collected in the following month. Compute cash collections from customers for each month.

2. Pharoah Company prepares monthly cash budgets. Relevant data from operating budgets for 2022 are as follows.

		January		February
Sales		$324,000		$360,000
Direct materials purchases		108,000		112,500
Direct labor		81,000		90,000
Manufacturing overhead		63,000		67,500
Selling and administrative expenses		71,100		76,500

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 $900 of depreciation per month. Other data:

1.		Credit sales: November 2021, $225,000; December 2021, $288,000.
2.		Purchases of direct materials: December 2021, $90,000.
3.		Other receipts: JanuaryCollection of December 31, 2021, notes receivable $13,500; FebruaryProceeds from sale of securities $5,400.
4.		Other disbursements: FebruaryPayment of $5,400 cash dividend.

The companys cash balance on January 1, 2022, is expected to be $54,000. The company wants to maintain a minimum cash balance of $45,000.

(a) Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February.