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A. - 430550/quizzes/138023 Question 3 Not yet graded / 26 pts Lorch Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows. January February Sales $350,000 $400,000 Direct materials purchases 120,000 1 10,000 Direct labour 85,000 1 12.000 Manufacturing overhead 60,000 75.000 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 rst 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 1:\" balance due' In the month following the purchase. _ a\