Problem 9-4A (Video) Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. Sales Direct materials purchases Direct labor Manufacturing overhead Selling and administrative expenses January $374,400 124,800 93,600 72,800 82,160 February $416,000 130,000 104,000 78,000 88,400 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 $1,040 of depreciation per month. Other data: 1. Credit sales: November 2019, $260,000; December 2019, $332,800. 2. Purchases of direct materials: December 2019, $104,000. Other receipts: January-Collection of December 31, 2019, notes receivable $15,600; February-Proceeds from sale of securities $6,240. 4. Other disbursements: February-Payment of $6,240 cash dividend. The company's cash balance on January 1, 2020, is expected to be $62,400. The company wants to maintain a minimum cash balance of $52,000. Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February Expected Collections from Customers February January 52000 November December 99840 66560 January 187200 112320 February 0 208000 Total collections 339040 386880 Expected Payments for Direct Materials January February February 5 52000 December 9940 187200 January 38000 Expected Payments for Direct Materials December January Prepare a cash budget for January and February in columnar form. COLTER COMPANY Cash Budget For the theores Ending 2.200 February 52000 Bei Cash Balance 62.400 33040 Collections from Customers Rece Sale of Securities 15.600 39120 417040 5130 Less: Disbursements 13 130000 104.000 78.000 31120 Manufacturing Overhead Selling and Administrative per Cash Dividend Total Distrements Excess (Deficiency) of Avalabile Cash Over Cash Disbursements 6.240 05600 39520 1240 0 52000 52000 Ending Cash Balance Click if you would like to show Work for this question: By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Question Attems of wed SAVE POR LATER awer this incorrectly in your first