Vaughn Company prepares monthly cash budgets. Relevant data from operating budgets for 2023 are as follows: January February Sales $352,000 $399,000 Direct materials purchases 121,000 109,000 Direct labour 86,000 112,000 Manufacturing overhead 60,000 75,000 Selling and administrative expenses 76,000 80,000 All sales are on account. Vaughn expects collections 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. It pays 30% of direct materials purchases in cash in the month of purchase and the balance due in the month following the purchase. Other data are as follows: 1. Credit sales: November 2022, $200,000; December 2022, $278,000 2. Purchases of direct materials: December 2022, $90,000 3. Other receipts: Januarycollection of December 31, 2022, notes receivable $5,000; Februaryproceeds from sale of securities $6,000 4. Other disbursements: Februarypayment of $20,000 for land The company expects its cash balance on January 1, 2023, to be $50,000. It wants to maintain a minimum cash balance of $40,000. Prepare schedules for (1) the expected collections from customers. Month January February November $enter a dollar amount 20000 $enter a dollar amount December enter a dollar amount 111200 enter a dollar amount 27800 January enter a dollar amount 176000 enter a dollar amount 140800 February enter a dollar amount enter a dollar amount 199500 $enter a total amount 307200 $enter a total amount 368100 (2) the expected payments for direct materials purchases. Month January February December $enter a dollar amount 63000 $enter a dollar amount January enter a dollar amount 36300 enter a dollar amount 84700 February enter a dollar amount enter a dollar amount 32700 $enter a total amount 99300 $enter a total amount 117400

Prepare a cash budget for January and February using columns for each month.