January		February
Sales		$288,000		$320,000
Direct materials purchases		96,000		100,000
Direct labor		72,000		80,000
Manufacturing overhead		56,000		60,000
Selling and administrative expenses		63,200		68,000

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 $800of depreciation per month. Other data:

1.		Credit sales: November 2021, $200,000; December 2021, $256,000.
2.		Purchases of direct materials: December 2021, $80,000.
3.		Other receipts: JanuaryCollection of December 31, 2021, notes receivable $12,000; FebruaryProceeds from sale of securities $4,800.
4.		Other disbursements: FebruaryPayment of $4,800cash dividend.

The company's cash balance on January 1, 2022, is expected to be $48,000. The company wants to maintain a minimum cash balance of $40,000.

1. 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
November	$	$
December	$	$
January	$	$
February	$	$
Total Collections	$	$

Expected Payments for Direct Materials

	January	Febuary
December	$	$
January	$	$
February	$	$
Total Payments	$	$