Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. January February Sales $421,200 $468,000 Direct materials purchases Direct labor 140,400 105,300 81,900 146,250 117,000 87,750 99.450 Manufacturing overhead Selling and administrative expenses 92.430 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 $1,170 of depreciation per month Other data 1 Credit sales: November 2019, 5292,500 December 2019, $374,400 2. Purchases of direct materials: December 2019, $117,000 3. Other receipts: January-Collection of December 31, 2019. notes receivable $17550 February-Proceeds from sale of securities $7,020, 4. Other disbursements: February - Payment of $7,020 cash dividend The company's cash balance on January 1, 2020, is expected to be $70,200. The company wants to maintain a minimum cash balance of $58,500. Expected Collections from Customers January February November 58500 December 112320 74880 January 210600 126360 February 234000 Total collections 381420 435240 Expected Payments for Direct Materials January February December 46800 January 84240 56160 February 87750 Total payments 131040 143910 COLTER COMPANY Cash Budget January February