Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows: January February Sales $367,200 122,400 91,800 71,400 80,580 $408,000 127,500 102,000 76,500 86,700 Direct materials purchases 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. Credit sales: November 2016, $255,000; December 2016, $326,400 2. 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. Your answer is correct. Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February. Expected Colections from Customers January February November 51000 December 97920 65280 January 183600 110160 February 204000 Total collections 332520 379440 Expected Payments for Direct Materials January February December 40800 January 73440 48960 February 76500 Total payments 114240 125460 Prepare a cash budget for January and February in columnar form. (Do not leave any answer field blank. Enter 0 for a COLTER COMPANY Cash Budget For the Two Months Ending February 28, 2017 Januar Februa Beginning Cash Balance 61200 52020 Addividend Notes Receivable 15300 Collections fromm 332520 379440 Notes Receivable Sale of Securities 612 Total Available Cash 409020 437580 Less | is 40902 43758 Direct Labor 91800 102000 Manufacturing Overhead 71400 76500 Selling and Administrative Expenses 79560 85680 Cash Dividend 6120 Total Dis 357000 395760 Excess (Deficiency) of Available Cash Over Cash Disbursements 52020 41820 Excess (Deficiency) of Available Cash Over Cash Disbursements 52020 41820 Add Borrowings Less .Repayments Ending Cash Balance 9180 9180 52020 51000