Problem 9-4A (Part Level Submission) (Video) Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. January February Sales $450,000 $500,000 Direct materials purchases 150,000 156,250 Direct labor 112,500 125,000 Manufacturing overhead 87,500 93,750 Selling and administrative expenses 98,750 106,250 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 $1,250 of depreciation per month. Other data: 1. 2. 3. Credit sales: November 2019, $312,500; December 2019, $400,000. Purchases of direct materials: December 2019, $125,000. Other receipts: January-Collection of December 31, 2019, notes receivable $18,750; February-Proceeds from sale of securities $7,500. Other disbursements: February-Payment of $7,500 cash dividend. The company's cash balance on January 1, 2020, is expected to be $75,000. The company wants to maintain a minimum cash balance of $62,500. (b) Your answer is partially correct. Try again. Prepare a cash budget for January and February in columnar form. COLTER COMPANY Cash Budget For the Two Months Ending February 28, 2020 January February Beginning Cash Balance 75000 63750 Add Receipts Collections from Customers 407500 465000 Notes Receivable 18750 Sale of Securities 7500 Ending Cash Balance Total Available Cash 501250 536250 Less Disbursements Direct Materiale 140 nnnl 16275l Ending Cash Balance Total Available Cash 501250 536250 Lesse Disbursements Direct Materials 140,000 153750 Direct Labor 112500 125000 Manufacturing Overhead 87500 93750 Selling and Administrative Expenses 97500 105000 Cash Dividend 7500 Total Disbursements 63750 51250 Excess (Deficiency) of Available Cash Over Cash Disbursements 63750 51250 Total Receipts Add Borrowings II Less Repayments Selling and Administrative Expenses 97500 105000 Cash Dividend 7500 Total Disbursements 63750 51250 . Excess (Deficiency) of Available Cash Over Cash Disbursements 63750 51250 Total Receipts Add 4 Borrowings Less e Repayments dll) lll Total Disbursements Click if you would like to show Work for this question: Open Show Work