Question 15 of 15 -/10 E View Policies Current Attempt in Progress Lorch Company prepares monthly cash budgets. Relevant data from operating budgets for 2021 are as follows: January February $351,000 $400,000 119,000 109,000 Sales Direct materials purchases Direct iabour Manufacturing overhead Selling and administrative expenses 84,000 113,000 59.000 74,000 76,000 81,000 All sales are on account Lorch expects collections to be 50% in the month of sale, 40% in the first month following the sale, and 10% in the second month following the sale. It pays 30% of direct materials purchases in cash in the month of purchase and the balance due in the month following the purchase Other data are as follows: 1 Credit Sales: November 2020, $200,000: December 2020. $281.000 2. Purchases of direct materials: December 2020, $89.000 3. Other relevant Decembar 202.00 tests.com Ehment -/10 1. Credit sales: November 2020, $200,000: December 2020. $281.000 2. Purchases of direct materials: December 2020. $89,000 3. Other receipts: January-collection of December 31, 2020, notes receivable $4.000: February-proceeds from sale of securities $5.000 4. Other disbursements: February-payment of $20,000 for land The company expects its cash balance on January 1, 2021, to be $51.000. It wants to maintain a minimum cash balance of 540,000 Prepare schedules for (1) the expected collections from customers Month January February November December January Prepare schedules for (1) the expected collections from customers. Month January February November December January February (2) the expected payments for direct materials purchases. Month January February December January Question 15 of 15 (2) the expected payments for direct materials purchases. Month January February December $ January February $ $ Question Part Score Prepare a cash budget for January and February using columns for each month, LORCH COMPANY Cash Budget For the Two Months Ending February 28, 2021 Question 15 of 15 -/10 E LORCH COMPANY Cash Budget For the Two Months Ending February 28, 2021 Jan Feb Beginning cash balance Add: Cash receipts Total receipts Total available cash Less: Disbursements 26C Sunny . OT Question 15 of 15