Coronado Company prepares monthly cash budgets. Relevant data from operating budgets for 2023 are as follows:

		January		February
Sales		$354,000		$399,000
Direct materials purchases		121,000		111,000
Direct labour		85,000		113,000
Manufacturing overhead		60,000		76,000
Selling and administrative expenses		74,000		81,000

All sales are on account. Coronado 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, $198,000; December 2022, $280,000
2.	Purchases of direct materials: December 2022, $91,000
3.	Other receipts: Januarycollection of December 31, 2022, notes receivable $5,000; Februaryproceeds from sale of securities $6,000
4.	Other disbursements: Februarypayment of $19,000 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 (A) the expected collections from customers.

Month			January		February
November			$enter a dollar amount		$enter a dollar amount
December			enter a dollar amount		enter a dollar amount
January			enter a dollar amount		enter a dollar amount
February			enter a dollar amount		enter a dollar amount
			$enter a total amount		$enter a total amount

(B) the expected payments for direct materials purchases.

Month			January		February
December			$enter a dollar amount		$enter a dollar amount
January			enter a dollar amount		enter a dollar amount
February			enter a dollar amount		enter a dollar amount
			$enter a total amount		$enter a total amount

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

LORCH COMPANY Cash Budget For the Two Months Ending February 28, 2021