TRIIIIII Pharoah Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. Sales Direct materials purchases Direct labor Manufacturing overhead Selling and administrative expenses January $421,200 140,400 105,300 February $468,000 146,250 117,000 87,750 9 9,450 81,900 92,430 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 to the month following the purchase. All other items above are paid in the month incurred except for selling and administrative expenses that Induda $1,170 of depreciation per month Other data: 1. 2. 3. Credit sales: November 2019, $292,500; December 2019, $374,400 Purchases of direct materials: December 2019, $117,000. Other receipts: January-Collection of December 31, 2019, notes receivable $17.55 February-Proceeds from sale of securities $7,020, Other disbursements: February-Payment of $7,020 cash dividend. 4. The company's cash balance on January 1, 2020, Is expected to be 370,200. The company wants to maintain a minimum cash balance of $58,500. 13 1 Bahruary TRIIIIII Pharoah Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. Sales Direct materials purchases Direct labor Manufacturing overhead Selling and administrative expenses January $421,200 140,400 105,300 February $468,000 146,250 117,000 87,750 9 9,450 81,900 92,430 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 to the month following the purchase. All other items above are paid in the month incurred except for selling and administrative expenses that Induda $1,170 of depreciation per month Other data: 1. 2. 3. Credit sales: November 2019, $292,500; December 2019, $374,400 Purchases of direct materials: December 2019, $117,000. Other receipts: January-Collection of December 31, 2019, notes receivable $17.55 February-Proceeds from sale of securities $7,020, Other disbursements: February-Payment of $7,020 cash dividend. 4. The company's cash balance on January 1, 2020, Is expected to be 370,200. The company wants to maintain a minimum cash balance of $58,500. 13 1 Bahruary