Prepare a cash budget for January and February in columnar form. Show calculations.

Problem 21-4A (Part Level Submission) Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2014 are: anua ebrua Sales Direct materials purchases Direct labor Manufacturing overhead Selling and administrative expenses $367,150 115,390 94,410 73,430 82,871 $419,600 136,370 104,900 78,675 90,214 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. Sixty percent (60%) of direct materials purchases are paid in cash in the month of purchase, and the balance due is paid in the month following the purchase. All other items above are paid in the month incurred except for selling and administrative expenses that include $1,049 of depreciation per month Other data: 1. 2. 3. Credit sales: November 2013, $272,740; December 2013, $335,680 Purchases of direct materials: December 2013, 104,900 Other receipts: January-Collection of December 31, 2013, notes receivable $15,735; February-Proceeds from sale of securities 6,294 4. Other disbursements: February-Payment of $5,245 cash dividend The company's cash balance on January 1, 2014, is expected to be $62,940. The company wants to maintain a minimum cash balance of $52,450