Current Attempt in Progress Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. Sales Direct materials purchases Direct labor Manufacturing overhead Selling and administrative expenses January $428,400 142,800 107,100 83,300 94,010 February $476,000 148,750 119,000 89,250 101,150 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 $1,190 of depreciation per month. Other data: 1. 2. 3. Credit sales: November 2019, $297,500: Decembr 2019, $380,800. Purchases of direct materials: December 2019, $119,000. Other receipts: January-Collection of December 31, 2019, notes receivable $17,850; February-Proceeds from sale of securities $7.140. Other disbursements: February-Payment of $7,140 cash dividend. 4. The company's cash balance on January 1, 2020, is expected to be $71,400. The company wants to maintain a minimum cash balance of $59,500. Your answer is correct. Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February Expected Collections from Customers January February 59500 $ 0 November 76160 December 114240 128520 214200 January 238000 0 February $ 387940 442680 Total collections $ Expected Payments for Direct Materials January February December 0 47600 $ January 85680 57120 February 89250 0 133280 Total payments 146370 $ Your answer is partially correct. Prepare a cash budget for January and February in columnar form. COLTER COMPANY Cash Budget February 28, 2020 January 71400 $ Beginning Cash Balance $ Add : i Receipts Collections from Customers v 387940 Notes Receivable 17850 Sale of Securities Total Receipts 405790 16 ty cuestion 3 of 3 20.06 / 34