The Western Company Cash Collection Schedule, Cash Disbursement Schedule, and Cash Budget The following information was obtained from the various 2017 operating budgets for the Western Company: + January February Sales $350,000 $400,000 + Direct Materials Purchases 120,000 110,000 Direct Labor 85,000 112,000 Manufacturing Overhead 60,000 75,000 Selling and Administrative Expenses 75,000 80,000 All sales are on account. Cash collections are expected to be 50% in the month of sale, 40% in the first month following the sale, and 10% in the second month following the sale. Thirty percent (30%) 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. Depreciation has been excluded from manufacturing overhead and selling and administrative expenses. Other data: 1. Credit sales: November 2016, $200,000; December 2016, $280,000. 2. Purchases of direct materials: December 2016, $80,000. 3. Other receipts in January: a) Collected $5,000 in interest receivable b) Collected $6,000 from sale the sale of securities 4. Other disbursements: February-Paid $20,000 for a land purchase The company's cash balance on January 1, 2017, is expected to be $50,000 and the company's management wants to maintain a minimum cash balance of $40,000 at the end of each month. Instructions: (a) Prepare schedules for: (1) expected collections from customers and (2) expected payments for direct materials purchases. (b) Prepare a properly formatted cash budget for January and February in columnar form. Using the information contained in the attached file, prepare: 1. A Cash Collection Schedule 2. A Cash Payment Schedule 3. A Cash Budget