pharoah company prepares monthly cash budgets

January February

sales 381600. 424000

direct materials. 127200. 132500

direct labor 95400. 106000

manufacturing overhead 74200. 79500

selling and admin. 83740. 90100

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. 60% of the direct materials purchases are paid in the month of purchase