Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows: January February Sales Direct materials purchases Direct labor $367,200 122,400 91,800 71,400 80,580 $408,000 127,500 102,000 76,500 86,700 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 3. Other receipts: January-Collection of December 31, 2016, notes receivable $15,300 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. February-Proceeds from sale of securities $6,120 COLTER COMPANY Cash Budget February 28, 2017 Februa Total Available Cash 40902 43758 Less Ending Cash Balance 52020 51000