Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2014 are: 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 $1,000 of depreciation per month. Other data: 1. Credit sales: November 2013,$250,000; December 2013,$320,000 2. Purchases of direct materials: December 2013,$100,000 3. Other receipts: In January collected various December 31,2013 notes receivable $15,000. 4. Other disbursements: In February - payment of $6,000 cash dividend The company's cash balance on January 1,2014 , 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 for January and February. (b) Prepare a cash budget for January and February in columnar form. (a) 1. \begin{tabular}{|l|l|l|} \hline \multicolumn{3}{|c|}{ Colter Company } \\ \hline \multicolumn{2}{|c|}{ Schedule I of Expected Collections from Customers } \\ \hline \multicolumn{1}{|c|}{ Sales per month } & \multicolumn{2}{|c|}{ Collection on } \\ \hline January & February \\ \hline Credit Sales November 2103 & S & 5 \\ \hline Credit Sales December 2013 & & \\ \hline Credit Sales January 2014 & & \\ \hline Credit Sales February 2014 & & \\ \hline Total Collections per month & 5 & 5 \\ \hline \end{tabular} (a) 2 \begin{tabular}{|l|l|l|} \hline \multicolumn{3}{|c|}{ Colter Company } \\ \hline \multicolumn{3}{|c|}{ Schedule II of Expected Payments for Direct } \\ \hline \multicolumn{1}{|c|}{ Purcahses per month } & \multicolumn{2}{|c|}{ Payments on } \\ \hline January & February \\ \hline Credit Purchases (Acct Pay Bal) December 2103 & $ & S \\ \hline Credit Purchases January 2014 & & \\ \hline Credit Purchases February 2014 & & \\ \hline Total Payment per month & S & S \\ \hline \end{tabular}