Problem 21-4A (Part Level Submission) Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2014 are: January -February Sales $360,500 $412,000 Direct materials purchases 113,300 133,900 Direct labor 92,700 103,000 72,100 Manufacturing overhead 77,250 88,580 Selling and administrative expenses 81,370 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 $1,030 of depreciation per month. Other data: 1. Credit sales: November 2013, $267,800; December 2013, $329,600 2. Purchases of direct materials: December 2013, $103,000. 3. Other receipts: January-Collection of December 31, 2013, notes receivable $15,450; February-Proceeds from sale of securities $6,180. 4. Other disbursements: February-Payment of $5,150 cash dividend The company's cash balance on January 1, 2014, is expected to be $61,800. The company wants to maintain a minimum cash balance of $51,500