Your answer is partially correct. Prepare a cash budget for January and February in columnar form. COLTER COMPANY Cash Budget For the Two Months Ending February 28, 2020 January February ih Balance $ 71400 $ 60690 Receipts rom Customers 387940 442680 rities 0 7140 able 17850 0 ts 0 7140 a Cash 405790 449820 Disbursements rials 477190 510510 133280 146370 ng Overhead 107100 119000 dministrative Expenses 83300 89250 d 92820 99960 sements 7140 ency) of Available Cash Over Cash Disbursements 416500 461720 Borrowings 60690 48790 Repayments 0 10710 Jalance $ 60690 $ 595500 e Textbook and Media Current Attempt in Progress Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. January February Sales $428,400 $476,000 Direct materials purchases 142,800 148,750 Direct labor 107,100 119,000 Manufacturing overhead 83,300 89,250 Selling and administrative expenses 94,010 101,150 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 $1,190 of depreciation per month. Other data: 1. Credit sales: November 2019, $297,500; December 2019, $380,800. 2. Purchases of direct materials: December 2019. $119,000. 3. Other receipts: January-Collection of December 31, 2019, notes receivable $17,850; February-Proceeds from sale of securities $7,140. 4. Other disbursements: February-Payment of $7,140 cash dividend. The company's cash balance on January 1, 2020, is expected to be $71,400. The company wants to maintain a minimum cash balance of $59,500