Problem 21-4A Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows: January FeD February $372,240 124,080 93,060 72,380 81,686 $413,600 129,250 103,400 77,550 87,890 Sales Direct materials purchases Direct labor Manufacturing overhead Selling and administrative expenses 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 $1,034 of depreciation per month Other data 1 Credit sales: November 2016, $258,500; December 2016, $330,880 2. Purchases of direct materials: December 2016, $103,400 3. Other receipts: January-Collection of December 31, 2016, notes receivable $15,510; 4. Other disbursements: February-Payment of $6,204 cash dividend The company's cash balance on January 1, 2017, is expected to be $62,040. The company wants to maintain a minimum cash balance of $51,700 February-Proceeds from sale of securities $6,204