Matson Company prepares monthly cash budgets. Relevant forecasted data from operating budgets for $2020$ are:

January February

Sales $$340,000$ $$360,000$

Direct materials purchases $$125,000$ $$130,000$

Direct labor $$95,000$ $$104,000$

Manufacturing overhead $$87,000$ $$89,000$

Selling & administrative expenses $$70,000$ $$73,000$

All sales are on account. Collections are expected to be $65\%$ in the month of sale, $25\%$ in the first month following the sale, and $10\%$ in the second month following the sale. Sixty percent $(60\%)$ of direct material 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 manufacturing overhead that includes $$2,000$ of depreciation per month.

Other data:

$1.$ Recent actual credit sales: November $2019,$ $$350,000$; December $2019,$ $$380,000$

$2.$ Recent actual purchases of direct materials: December $2019,$ $$138,000$

$3.$ Other expected cash receipts: January $2020$ Collection of December $2019$ note receivable $$12,000$

The company$$s cash balance on January $1,2020$ is expected to be $$64,000.$ The company wants to maintain a minimum cash balance of $$25,000.$

Required:

a$.$ Prepare schedules for $(1)$ expected cash collections from customers, and $(2)$ expected payments for direct materials purchases in each of January and February of $2020.$

b$.$ Prepare cash budgets for January and February of $2020.$