Waterway Company prepares monthly cash budgets. Relevant data from operating budgets for 2022 are as follows. January February Sales $460,800 $512,000 Direct materials purchases 153,600 160,000 Direct labor 115,200 128,000 Manufacturing overhead 89,600 96,000 Selling and administrative expenses 101,120 108,800 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 $1,280 of depreciation per month. Other data: 1. Credit sales: November 2021, $320,000; December 2021, $409,600. 2. Purchases of direct materials: December 2021, $128,000. 3. Other receipts: January-Collection of December 31, 2021, notes receivable $19,200; February-Proceeds from sale of securities $7,680. 4. Other disbursements: February-Payment of $7,680 cash dividend. The company's cash balance on January 1, 2022, is expected to be $76,800. The company wants to maintain a minimum cash balance of $64,000. Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February. WATERWAY COMPANY Schedule of Expected Collections from Customers For the Two Months Ending February 28, 2022 January November $ December January February Total collections December January February 64000 $ 122880 230400 417280 WATERWAYCOMPANY Schedule of Expected Payments for Direct Materials For the Two Months Ending February 28, 2022 January February 51200 $ 92160 81920 138240 256000 476160 61440 i 96000 February Total payments 143360 157440 Prepare a cash budget for January and February in columnar form. Beginning Cash Balance Add Cash Dividend Notes Receivable Sale of Securit Total Receipts Receipts Total Avaliable Cash Less Direct Materials Direct Labor Disbursements Manufacturing Overhead WATERWAY COMPANY Cash Budget For the Two Months Ending February 28, 2022 > > Selling and Administrative Expenses Total Disbursements Exxcess (Deficiency) of Available Cash Over Cash Disbursements Financing Less Repayments Less Ending Cash Balance January $ $ S 76800 Prepare a cash budget for January and February in columnar form. menta Expenses WATERWAY COMPANY Cash Budget For the Two Months Ending February 28, 2022 Table Cash Over Cash Dlabursements ants $ January February $ 76800