Novak Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows:

January

February

Sales $426,240 $473,600 Direct materials purchases 142,080 148,000 Direct labor 106,560 118,400 Manufacturing overhead 82,880 88,800 Selling and administrative expenses 93,536 100,640

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 $1,184of depreciation per month.

Other data:

1.Credit sales: November 2016, $296,000; December 2016, $378,880.2.Purchases of direct materials: December 2016, $118,400.3.Other receipts: JanuaryCollection of December 31, 2016, notes receivable $17,760;FebruaryProceeds from sale of securities $7,104.4.Other disbursements: FebruaryPayment of $7,104cash dividend.

The company's cash balance on January 1, 2017, is expected to be $71,040. The company wants to maintain a minimum cash balance of $59,200.

(a)

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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

February

December$

$

January

February

Total payments$

$