Problem 9-4A (Video) Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. January February Sales $374,400 $416,000 Direct materials purchases 124,800 130,000 Direct labor 93,600 104,000 Manufacturing overhead 72,800 78,000 Selling and administrative expenses 82,160 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. 2. 3. Credit sales: November 2019, $260,000; December 2019, $332,800. Purchases of direct materials: December 2019, 5104,000. Other receipts: January-Collection of December 31, 2019, notes receivable 515,600; FebruaryProceeds from sale of securities $6,240. Other disbursements: February-Payment of $6,240 cash dividend. 4 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 January February November $ 52000 $ 0 December 99840 66560 January 187200 112320 February 0 208000 Total collections 339040 386880 Expected Payments for Direct Materials January February January 187200 112320 February 0 208000 Total collections 339040 386880 Expected Payments for Direct Materials January February December 41600 0 $ $ January 74880 49920 February 0 78000 Total payments 116480 127920 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 62400 Beginning Cash Balance 53040 Add Receipts Collections from Customers 339040 386880 > Sale of Securities 0 6240 Notes Receivable 15600 0 Total Receipts 354640 393120 > Total Available Cash 417040 446160 Less Disbursements Notes Receivable 15600 Total Receipts 354640 393120 Total Available Cash 417040 446160 Less Disbursements > Direct Materials 104000 Manufacturing Overhead 72800 78000 > Selling and Administrative Expenses 81120 87360 Cash Dividend > 0 6240 Total Disbursements 364000 403520 Excess (Deficiency) of Available Cash Over Cash Disbursements 53040 42640 Financing Add Borrowings 0 9360 Less Repayments 0 0 Ending Cash Balance $ 53040 52000 Click if you would like to Show Work for this question: Open Show Work