Current Attempt in Progress Pharoah Company prepares monthly cash budgets. Relevant data from operating budgets for 2022 are as follows. January February Sales $403,200 $448,000 Direct materials purchases 134,400 140,000 Direct labor 100,800 112,000 Manufacturing overhead 78,400 84,000 Selling and administrative expenses 88,480 95,200 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 $1,120 of depreciation per month. Other data: 1. Credit sales: November 2021, $280,000; December 2021, $358,400. 2. Purchases of direct materials: December 2021, $112,000. 3. Other receipts: January-Collection of December 31, 2021, notes receivable $16,800; February-Proceeds from sale of securities $6,720. 4. Other disbursements: February-Payment of $6,720 cash dividend. The company's cash balance on January 1, 2022, is expected to be $67,200. The company wants to maintain a minimum cash balance of $56,000. (a) (a) Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February. Expected Collections from Customers November $ December January February Total collections $ December $ January February January February $ $ Expected Payments for Direct Materials January Total payments $ $ eTextbook and Media Save for Later February Attempts: 0 of 5 used Submit Answer (b) Prepare a cash budget for January and February in columnar form. PHAROAH COMPANY Cash Budget January $ $ eTextbook and Media Save for Later Attempts: 0 of 5 used Submit