Crane Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. January February Sales Direct materials purchases Direct labor Manufacturing overhead Selling and administrative expenses $446,400 148,800 111,600 86,800 97,960 $496,000 155,000 124,000 93,000 105,400 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 $1,240 of depreciation per month. Other data: 1. 2. 3. Credit sales: November 2019, $310,000; December 2019, $396,800. Purchases of direct materials: December 2019, $124,000. Other receipts: January-Collection of December 31, 2019, notes receivable $18,600; February-Proceeds from sale of securities $7,440. Other disbursements: February-Payment of $7,440 cash dividend. 4. The company's cash balance on January 1, 2020, is expected to be $74,400. The company wants to maintain a minimum cash balance of $62,000. Sdle Ul Securities T Total Receipts - T 422840 468720 T Total Available Cash 497240 531960 Less :).Disbursements Disbursements T Direct Materials 138880 152520 T Direct Labor 111600 T Manufacturing Overhead T 86800 93000 T Selling and Administrative Expenses 96720 104160 T Cash Dividend 7440 T Total Disbursements T 434000 481120 T Excess (Deficiency) of Available Cash Over Cash Disbursements 63240 50840 T Financing T Borrowings 395560 add a Press a Borrowings repayments Repayments Ending Cash Balance 63240 62000