follow: Calculate the gross profit under each plan.) Nigh Corporation prepares monthly cash budgets. Relevant data from operating budgets for 2017 Prepare ca (104) AR January February $350,000 Direct materials purchases Direct labour Manufacturing overhead Selling and administrative expenses 81.000 Sales 120,000 80,000 70,000 79,000 $400,000 130,000 100,000 75,000 CHAPTER 21 Budgetary Planning bhn Wile 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 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 otherm above are paid in the month incurred, except for selling and administrative expenses, which include 1.000 depreciation per month Other data: 1. Credit sales: November 2016, 5260,000: December 2016, 5300,000 2. Purchases of direct materials: December 2016, 5100,000 3. Other receipts January collection of December 31, 2016. notes receivable $15.000 February proceeds from of investments, 56,000 4. Other disbursements: February payment of dividends. 55.000 The company's cash balance on January 1, 2017 is expected to be $60,000. The company wants to maintaina minimum cash balance of $50,000. Instructions (6) Prepare schedules for (1) the expected cash collections from customers and (2) the expected payments for direct materials purchases. (b) Prepare a cash budget for January and February