ich plan should be accepted? (Hint: Calculate the gross profit unui Calculate the producto (Round to two decimals.) ign Corporation prepares monthly cash budgets. Relevant data from operating budgets for 2011 February January P21-3A Nigh Corporatio follow: $350,000 120,000 80,000 70,000 79,000 $400,000 130,000 100,000 75,000 81,000 Sales Direct materials purchases Direct labour Manufacturing overhead Selling and administrative expenses onth following chases are paid in All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the first month foll the sale, and 20% in the second month following the sale. Sixty percent of direct materials purchases are cash in the month of purchase, and the balance due is paid in the month following the purchase. All other in above are paid in the month incurred, except for selling and administrative expenses, which include $1.00 depreciation per month. Other data: 1. Credit sales: November 2016, $260,000: December 2016, $300,000 2. Purchases of direct materials: December 2016, $100,000 3. Other receipts: January collection of December 31. 2016, notes receivable, $15,000 February proceeds from sal of investments, $6,000 4. Other disbursements: February payment of dividends, $5,000 The company's cash balance on January 1, 2017, is expected to be $60,000. The company wants to maintain a minimum cash balance of $50,000. Instructions (a) 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