Vaughn Company prepares monthly cash budgets. Relevant data from operating budgets for 2022 are as follows. January February Sales $446,400 $496,000 Direct materials purchases 148,800 155,000 Direct labor 111.600 124,000 Manufacturing overhead 86.800 93,000 Selling and administrative expenses 97.960 105,400 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 $1.240 of depreciation per month. Other data 1 Credit sales: November 2021. $310,000: December 2021. $396.800. 2. 3. 4. Purchases of direct materials: December 2021, $124,000 Other receipts: January-Collection of December 31, 2021. notes receivable $18.600 February-Proceeds from sale of securities $7,440. Other disbursements: February-Payment of $7,440 cash dividend The company's cash balance on January 1, 2022, is expected to be $74,400. The company wants to maintain a minimum cash balance of $62.000 (a) Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February VAUGHN COMPANY Schedule of Expected Collections from Customers November December January February Total collections January February 79,360 $ 93,000 62.000 221200 133920 395560 VAUGHNCOMPANY Schedule of Expected Payments for Direct Materials 248000 443920 December VAUGHNCOMPANY Schedule of Expected Payments for Direct Materials January February Total payments $ January February 443,920 eTextbook and Media Save for Later Attempts: 0 of 3 used Submit