need full answers for 1) the expected collections from customer

2) expected payments for direct materials purchases

and lorch company cash budget

Problem 10.38A a-b Lorch Company prepares monthly cash budgets. Relevant data from operating budgets for 2021 are as follows: Sales Direct materials purchases Direct labour Manufacturing overhead Selling and administrative expenses January $349,000 119,000 84,000 61,000 76,000 February $402,000 109,000 110,000 75,000 79,000 All sales are on account. Lorch expects collections to be 50% in the month of sale, 40% in the first month following the sale, and 10% in the second month following the sale. It pays 30% of direct materials purchases in cash in the month of purchase and the balance due in the month following the purchase. Other data are as follows: 1. Credit sales: November 2020, $202,000: December 2020, $278,000 2. Purchases of direct materials: December 2020, $89,000 3. Other receipts: January--collection of December 31, 2020, notes receivable $6,000; February--proceeds from sale of securities $6,000 4. Other disbursements: February-payment of $20,000 for land The company expects its cash balance on January 1, 2021, to be $50,000. It wants to maintain a minimum cash balance of $39,000. Prepare schedules for (1) the expected collections from customers. Month January February November December January ebruary (2) the expected payments for direct materials purchases. Month January February December $ January February LORCH COMPANY Cash Budget For the Two Months Ending February 28, 2021 Jan Feb Total Beginning cash balance Add: Cash receipts Total receipts Total available cash Less: Disbursements Total disbursements Excess of cash available over cash disbursements Financing: Borrowing Total financing Ending cash balance