Waterways Corporation is preparing its budget for the coming year, 2025. The first step is to plan for the first quarter of that coming year. The company has gathered information from its managers in preparation of the budgeting process. Sales Unit sales for November 2024 114,000 Unit sales for December 2024 101,000 Expected unit sales for January 2025 114,000 Expected unit sales for February 2025 112,000 Expected unit sales for March 2025 117,000 Expected unit sales for April 2025 126,000 Expected unit sales for May 2025 138,000 $12 Unit selling price Waterways likes to keep 100% of the next month's unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31, 2024, totaled $181,800. Direct Materials Direct materials cost 80 cents per pound. Two pounds of direct materials are required to produce each unit. Waterways likes to keep 5% of the materials needed for the next month in its ending inventory. Raw Materials on December 31, 2024 totaled 11,380 pounds. Payment for materials is made within 15 days. 50% is paid in the month of purchase, and 50% is paid in the month after purchase. Accounts Payable on December 31, 2024, totaled $120,595. Direct Labor Labor requires 12 minutes per unit for completion and is paid at a rate of $6 per hour. Manufacturing Overhead Indirect materials 30 per labor hour Indirect labor 50 per labor hour Utilities 40 per labor hour Maintenance 20 per labor hour Salaries $41,000 per month Depreciation $15,800 per month Property taxes $3,000 per month Insurance $1,400 per month Maintenance $1,300 per month Selling and Administrative Variable selling and administrative cost per unit is $1.70. Advertising $13,000 a month Insurance Salaries Depreciation $1,500 a month $70,000 a month $2,600 a month Other fixed costs $2,700 a month Other Information The Cash balance on December 31, 2024, totaled $100,000, but management has decided it would like to maintain a cash balance of at least $800,000 beginning on January 31, 2025. Dividends are paid each month at the rate of $2.50 per share for 5.360 shares outstanding. The company has an open line of credit with Romney's Bank. The terms of the agreement requires borrowing to be in $1,000 increments at 6% interest. Waterways borrows on the first day of the month and repays on the last day of the month. A $450,000 equipment purchase is planned for February. For the first quarter of 2025, prepare a schedule for expected cash collections from customers. Schedule of Expected Collections from Customers Accounts receivable, $ 12/31/19 January sales February sales March sales Total cash collections January February March $ $ $ Quar