Sarasota 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 $426,960 142,320 106,740 83,020 93,694 February $474,400 148,250 118,600 88,950 100,810 All sales are on account. Colections 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 $1,186 of depreciation per month. Other data: 1. 2. Credit sales: November 2016, $296,500: December 2016, $379,520. Purchases of direct materials: December 2016, $118,600. 3. Other receipts: January-Collection of December 31, 2016, notes receivable $17,790; February--Proceeds from sale of securities $7.116. Other disbursements: February-Payment of $7,116 cash dividend. The company's cash balance on January 1, 2017, is expected to be $71,160. The company wants to maintain a minimum cash balance of $59,300. 4. 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 December January February Total collections Expected Payments for Direct Materials January February December $ $ January February Total payments $ Prepare a cash budget for January and February in columnar form. (Do not leave any answer field blank. Enter for amounts.) SARASOTA COMPANY Cash Budget January February 8 :