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 Beginning cash balance $ Add: Cash receipts Total receipts Total available cash Less: Disbursements Sales Direct materials purchases Direct labour Manufacturing overhead Selling and administrative expenses $352,000 118,000 85,000 60,000 75,000 $396,000 109,000 112,000 74,000 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, $202,000: December 2020, $280,000 2. Purchases of direct materials: December 2020, $89.000 3. Other receipts: January-collection of December 31, 2020, notes receivable $5,000; February-proceeds from sale of securities $5,000 4. Other disbursements: February--payment of $19.000 for land The company expects its cash balance on January 1, 2021. to be 550,000, it wants to maintain a minimum cash balance of $40,000