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Question 15 of 15 > - / 10 II January February Sales $347,000 $397,000 Direct materials purchases 120,000 109,000 Direct labour 85,000 113,000 Manufacturing overhead 61,000 76,000 Selling and administrative expenses 75,000 80,000 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, $201.000: December 2000, $279.000 2 Purchases of direct materials: December 2020, $90,000 3. Other receipts.anuary-collection of December 31, 2020, notes receivable $6,000: February-proceeds from sale of securities 56,000 Other disbursements: February-payment of $20,000 for land The company expects its cash balance on January 1, 2021, to be $51,000. It wants to maintained cash balance of 540 000 Question 15 of 15 - / 10 ili Month January February Novernber $ December January February $ $ (2) the expected payments for direct materials purchases. Month January February December $ $ January February Month January February November December January February $ $ (2) the expected payments for direct materials purchases. Month January February December $ January February $ 9 Chp LORCH COMPANY Cash Budget For the Two Months Ending February 28, 2021 Jan Feb Beginning cash balance S $ Add: Cash receipts Total receipts Total available cash Less: Disbursements hp 4 lo f5 f6 Q f7 579) f8 13 |f9 f10 E 111 112