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. 20% in the second month following the sale: S ixty percento Other data: 1. 2. 3. Credit sales: November 2019, $260,000; December 2019, $332,800. Purchases of direct materials: December 2019, $104,000. Other receipts: January-Collection of December 31, 2019, notes receivable $15,600; 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 ti December 99840 66560 January 187200 112320 February 208000 Total collections 339040 386880 Expected Payments for Direct Materials January February December $ 41600 January 74880 T 49920 February 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 A January February Beginning Cash Balance 62400 Add Add a Receipts Receipts T Collections from Customers Notes Receivable T Sale of Securities Total Receipts 100000 Total Available Cash Less Disbursements Disbur Direct Materials Direct Labor Manufacturing Overhead Selling and Administrative Expenses Cash Dividend Total Disbursements bno idilli in blitto T Excess (Deficiency) of Available Cash Over Cash Disbursements A Financing A | Borrowings Repayments Ending Cash Balance Click if you would like to Show Work for this question: Open Show Work