Problem 9-4A (Part Level Submission) (Video) Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. January Sales Direct materials purchases Direct labor Manufacturing overhead Selling and administrative expenses $403,200 134,400 100,800 78,400 88,480 February $448,000 140,000 112,000 84,000 95,200 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 $1,120 of depreciation per month. Other data: 1. 2. 3. Credit sales: November 2019, $280,000; December 2019, $358,400. Purchases of direct materials: December 2019, $112,000. Other receipts: January-Collection of December 31, 2019, notes receivable $16,800; February-Proceeds from sale of securities $6,720. Other disbursements: February-Payment of $6,720 cash dividend. 4. The company's cash balance on January 1, 2020, is expected to be $67,200. The company wants to maintain a minimum cash balance of $56,000. Your answer is correct. Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February. Expected Collections from Customers January February November 56,000 December 107,520 71,680 January 201,600 120,960 February 224,000 Total collections 365,120 416,640 Expected Payments for Direct Materials January February December 44,800 January 80,640 53,760 February 84,000 Total payments 125,440 137,760 Click if you would like to Show Work for this question: Open Show Work COLTER COMPANY Cash Budget For the Two Months Ending February 28, 2020 January February Beginning Cash Balance Add 4. Receipts Collections from Customers Notes Receivable Sale of Securities Total Receipts Total Available Cash Less . Disbursements Direct Materials Direct Labor Manufacturing Overhead Selling and Administrative Expenses Cash Dividend Total Disbursements Excess (Deficiency) of Available Cash Over Cash Disbursements Financing Less . Repayments Add . Borrowings Ending Cash Balance