Problem 22-04A a-b (Video) (Part Level Submission) Wildhorse Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows anuary February Sales Direct materials purchases Direct labor Manufacturing overhead Selling and administrative expenses $439,200 146,400 109,800 85,400 96,380 $488,000 152,500 122,000 91,500 103,700 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 $1,220 of depreciation per month Other data Credit sales: November 2019, $305,000; December 2019, $390,400 Purchases of direct materials: December 2019, $122,000 1. 2. 3. Other receipts: January-Collection of December 31, 2019, notes receivable18,300; 4. Other disbursements: February-Payment of $7,320 cash dividend The company's cash balance on January 1, 2020, is expected to be $73,200. The company wants to maintain a minimum cash balance of 61,000 February-Proceeds from sale of securities $7,320 Expected Collections from Customers January February November 61,000 0 December 117,120 78,080 131,760 244,000 453,840 January 219,600 February 0 Total collections 397,720 Expected Payments for Direct Materials January February December 48,800 0 January 87,840 February 0 Total payments 136,640