Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will be collected in the following month. Purchases of direct materials are ail on credit and 50% are paid in the month of purchase and 50% in the month following purchase. Budgeted materials purchases are as follows: Proceeds from the sale of marketable securities in March will net $60,000 Direct labor $45,000 in February and $35,000 in March. Manufacturing overhead $20,000 in February and $16,000 in March. Selling and administrative expenses are $28,000, which includes $1,000 depreciation expense per month. Dividends of $70,000 will be paid in February. Equipment purchase of $75,000 in March. The company wishes to maintain a minimum cash balance of $50,000 at the end of each month. If necessary, the company borrows money from the bank at 6% interest (.5% monthly rate) to maintain the minimum cash balance. Borrowed money is repaid in months when there is art excess cash balance (that is, when the cash on hand exceeds the $50,000 minimum balance).The beginning cash balance on February 1 is expected to be $60,000. Prepare schedules for (1) expected collections from customers and (2) expected payments for direct material purchases for February and March. Prepare a cash budget for February and March in columnar form. Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will be collected in the following month. Purchases of direct materials are ail on credit and 50% are paid in the month of purchase and 50% in the month following purchase. Budgeted materials purchases are as follows: Proceeds from the sale of marketable securities in March will net $60,000 Direct labor $45,000 in February and $35,000 in March. Manufacturing overhead $20,000 in February and $16,000 in March. Selling and administrative expenses are $28,000, which includes $1,000 depreciation expense per month. Dividends of $70,000 will be paid in February. Equipment purchase of $75,000 in March. The company wishes to maintain a minimum cash balance of $50,000 at the end of each month. If necessary, the company borrows money from the bank at 6% interest (.5% monthly rate) to maintain the minimum cash balance. Borrowed money is repaid in months when there is art excess cash balance (that is, when the cash on hand exceeds the $50,000 minimum balance).The beginning cash balance on February 1 is expected to be $60,000. Prepare schedules for (1) expected collections from customers and (2) expected payments for direct material purchases for February and March. Prepare a cash budget for February and March in columnar form