Crane Company prepares monthly cash budgets. Relevant data from operating budgets for 2022 are as follows. January February Sales $288,000 $320,000 Direct materials purchases 96,000 100,000 Direct labor 72,000 80,000 Manufacturing overhead 56,000 60,000 Selling and administrative expenses 63,200 68,000 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 $800 of depreciation per month. Other data: 1. Credit sales: November 2021, $200,000; December 2021, $256,000. 2. Purchases of direct materials: December 2021, $80,000. 3. Other receipts: January-Collection of December 31, 2021, notes receivable $12,000; February-Proceeds from sale of securities $4,800. 4. Other disbursements: February-Payment of $4,800 cash dividend. The company's cash balance on January 1, 2022, is expected to be $48,000. The company wants to maintain a minimum cash balance of $40,000. (a) Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February. November December CRANE COMPANY Schedule of Expected Collections from Customers January February Total collections $ December January January February $ $ CRANECOMPANY Schedule of Expected Payments for Direct Materials January $ February Total payments $ $ eTextbook and Media Save for Later February Attempts: 0 of 5 used Submit