January February Sales $345,600 $384,000 Direct materials purchases 115,200 120,000 Direct labor 86,400 96,000 Manufacturing overhead 67,200 72,000 Selling and administrative expenses 75,840 81,600 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 $960 of depreciation per month. Other data: 1. Credit sales: November 2021, $240,000; December 2021, $307,200. 2. Purchases of direct materials: December 2021, $96,000. 3. Other receipts: JanuaryCollection of December 31, 2021, notes receivable $14,400; FebruaryProceeds from sale of securities $5,760. 4. Other disbursements: FebruaryPayment of $5,760 cash dividend. The companys cash balance on January 1, 2022, is expected to be $57,600. The

company wants to maintain a minimum cash balance of $48,000.