Question 3 of 4 < - / 12 View Policies Current Attempt in Progress Wildhorse Company prepares monthly cash budgets. Relevant data from operating budgets for 2022 are as follows. January February Sales $439.200 $488,000 Direct materials purchases 146,400 152,500 Direct labor 109.800 122,000 Manufacturing overhead 85,400 91,500 Selling and administrative expenses 96,380 103,700 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 $1.220 of depreciation per month.