TUDIM TRU IUCU1UILLIUDIJIVI Blossom Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. January February $442,800 $492,000 147,600 153,750 Sales Direct materials purchases Direct labor Manufacturing overhead Selling and administrative expenses 110,700 86,100 123,000 92,250 97,170 104,550 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 $1,230 of depreciation per month. Other data: 1. Credit sales: November 2019, $307,500; December 2019, $393,600. 2. Purchases of direct materials: December 2019, $123,000. 3. Other receipts: January-Collection of December 31, 2019, notes receivable $18,450; February-Proceeds from sale of securities $7,380. 4. Other disbursements: February-Payment of $7,380 cash dividend. The company's cash balance on January 1, 2020, is expected to be $73,800. The company wants to maintain a minimum cash balance of $61,500. 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 118080 78720 January 221400 132840 February 246000 Total collections 400980 457560 Expected Payments for Direct Materials January February December 49200 January 88560 59040 February 92250 Total payments 137760 151290 Prepare a cash budget for January and February in columnar form. BLOSSOM COMPANY Cash Budget For the Two Months Ending February 28, 2020 January February 73800 61500 Beginning Cash Balance eginning Cash Balance Add 4). Receipts Collections from Customers Notes Receivable Sale of Securities Total Receipts Receipts otal Available Cash Less Disbursements Excess (Deficiency of Available Cash Over Cash Disbursements - Direct Materials Direct Labor Manufacturing Overhead Selling and Administrative Expenses Cash Dividend Total Disbursements Financing Borrowings Repayments Ending Cash Balance