Riverbed Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows: Sales Direct materials purchases Direct labor Manufacturing overhead Selling and administrative expenses January $372,240 124,080 93,060 72,380 81,686 February $413,600 129.250 103.400 77.550 87,890 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 $1,034 of depreciation per month. Other data: 1 2 3. Credit sales: November 2016, $258,500; December 2016, $330,880 Purchases of direct materials: December 2016, $103.400. Other receipts: January--Collection of December 31, 2016, notes receivable $15.510; February - Proceeds from sale of securities $6,204. Other disbursements: February-Payment of $6,204 cash dividend. 4. The company's cash balance on January 1, 2017 is expected to be $62,040. The company wants to maintain a minimum cash balance of $51,700. 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 51700 December 99264 66176 January 186120 111672 February 206800 Total collections $ 337084 384648 Expected Payments for Direct Materials January 41360 February December January 74448 49632 February 27550 $ Total payments 115800 $ 127182 = January February A 5 ~! C 15 13 15 15 9 15 5 5