Colter Company prepares monthly cash budgets. Rele data from operating budgets for 2017 are as follows: January February Sales $367,200 $408,000 127,500 102,000 76,500 86,700 Direct materials purchases 122,400 91,800 71,400 80,580 Direct labor Manufacturing overhead Selling and administrative expenses 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 $1,020 of depreciation per month Other data: 1. 2. 3. Credit sales: November 2016, $255,000; December 2016, $326,400 Purchases of direct materials: December 2016, $102,000 Other receipts: January-Collection of December 31, 2016, notes receivable $15,300; February-Proceeds from sale of securities $6,120 4. Other disbursements: February-Payment of $6,120 cash dividend The company's cash balance on January 1, 2017, is expected to be $61,200. The company wants to maintain a minimum cash balance of $51,000