Question 3 Culver Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows: January February Sales $410,400 $456,000 Direct materials purchases 136,800 142,500 Direct labor 102,600 114,000 Manufacturing overhead 79,800 85,500 Selling and administrative expenses 90,060 96,500 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 folowing 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 $1,140 of depredation per month. Other data 1. Credit sales: November 2016, $285,000; December 2016, $364,800. 2. Purchases of direct materias: December 2016, $114,000. 3. Other receipts: January-Collection of December 31, 2016, nates receivable $17,100; February-Proceeds from sale of securities $6,840. 4. Other disbursements: February-Payment of $6,840 cash dividend. The company's cash balance on January 1, 2017, is expected to be $68,400. The company wants to maintain a minimum cash balance of $57,000. * Question 3 Your answer is correct. 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 357000 December 109440 172960 January 205200 123120 February 1228000 Total collections 7160 121000 Expected Payments for Direct Materials January February December 5600 January 192090 14720 February 11 185500 Total payments 5127080 140220 Attempts: 2 of 10 used * Question 3 Prepare a cash budget for January and February in columnar form. (Do not leave any answer field blank. Enter o for amounts.) CULVER COMPANY January February Attempts: 0 of 10 used