Pink Martini Corporation is projecting a cash balance of $31,000 in its December 31, 2019, balance sheet. Pink Martini's schedule of expected collections from customers for the first quarter of 2020 shows total collections of $179,000. The schedule of expected payments for direct materials for the first quarter of 2020 shows total payments of $44,000. Other information gathered for the first quarter of 2020 is as follows: sale of equipment $5,000; direct labour $63,000, manufacturing overhead $39,000; selling and administrative expenses $50,000; and purchase of securities $12,000. Pink Martini wants to maintain a balance of at least $25,000 cash at the end of each quarter. Prepare a cash budget for the first quarter. PINK MARTINI CORPORATION Cash Budget For the First Quarter Ending March 31, 2020 $ > A > > > 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 February $353,000 $404,000 122,000 111,000 85,000 112,000 61,000 76,000 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, $200,000; December 2020, $281,000 2. Purchases of direct materials: December 2020, $90,000 3. Other receipts: January-collection of December 31, 2020, notes receivable $6,000; February-proceeds from sale of securities $7,000 4. 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 maintain a minimum cash balance of $41,000. Prepare schedules for (1) the expected collections from customers. Month January February November $ $ $ December January February $ (2) the expected payments for direct materials purchases. Month January February December $ $ January February $ $ Prepare a cash budget for January and February using columns for each month. LORCH COMPANY Cash Budget For the Two Months Ending February 28, 2021 Jan Feb Total Beginning cash balance $ $ Add: Cash receipts