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Problem 21-4A Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows February January Sales $426,240 142,080 106,560 82,880 93,536 $473,600 148,000 118,400 88,800 100,640 Direct materials purchases Direct labor Manufacturing overhead Selling and administrative expenses 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 $1,184 of depreciation per month Other data: 1. Credit sales: November 2016, $296,000; December 2016, $378,880 2. Purchases of direct materials: December 2016, $118,400 3. Other receipts: January-Collection of December 31, 2016, notes receivable $17,760; 4. Other disbursements: February-Payment of $7,104 cash dividend The company's cash balance on January 1, 2017, is expected to be $71,040. The company wants to maintain a minimum cash balance of $59,200 February-Proceeds from sale of securities $7,104 Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February. Expected Collections from Customers February January November December January February Total collections Prepare a cash budget for January and February in columnar form. (Do not leave any answer field blank. Enter O for amounts.) COLTER COMPANY Cash Budget February January