K2 Question 1 Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows: January February Sales $405,360 $450,400 Direct materials purchases 135,120 140,750 Direct labor 101,340 112,600 Manufacturing overhead 78,820 84,450 Selling and administrative expenses 88,954 95,710 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 $1,126 of depreciation per month. Other data: 1. Credit sales: November 2016, $281,500; December 2016, $360,320. 2. Purchases of direct materials: December 2016, $112,600. 3. Other receipts: JanuaryCollection of December 31, 2016, notes receivable $16,890; FebruaryProceeds from sale of securities $6,756. 4. Other disbursements: FebruaryPayment of $6,756 cash dividend. The companys cash balance on January 1, 2017, is expected to be $67,560. The company wants to maintain a minimum cash balance of $56,300.

Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February Expected Collections fron Customers anuar lielam ar November December January February Total collections Expected Payments for Direct Materials January_February anuary February Total payments