Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2022 are as follows. January February Sales $360,000 $400,000 Direct materials purchases 120,000 125,000 Direct labor 90,000 100,000 Manufacturing overhead 70,000 75,000 Selling and administrative expenses 79,000 85,000 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 2021, $250,000; December 2021, $320,000. 2. Purchases of direct materials: December 2021, $100,000. Other receipts: January-Collection of December 31, 2021, notes receivable $15,000; February-Proceeds from sale of securities $6,000. 4. Other disbursements: February-Payment of $6,000 cash dividend. The company's cash balance on January 1, 2022, is expected to be $60,000. The company wants to maintain a minimum cash balance of $50,000. Prepare a cash budget for January and February in columnar form. COLTER COMPANY Cash Budget January February ing Cash Balance Collections from Customers of Securities Receivable f Securities COLTER COMPANY Cash Budget For the Two Months Ending February 28, 2022 January February 60000 $ 326000 15000 i ctions from Customers 341000 vings Labor Direct Materials 32 3 401000 4: 112000 12 t Labor facturing Overhead g and Administrative Expenses Dividend Disbursements tions from Customers Borrowings Repayments Cash Balance 112000 12 90000 10 70000 7 78000 350000 i 3880 51000 51000