Ivanhoe Company prepares monthly cash budgets. Relevant data from operating budgets for 2023 are as follows: Sales Direct materials purchases Direct labour Manufacturing overhead Selling and administrative expenses January $347,000 119,000 84,000 59,000 75,000 February $396,000 111,000 113,000 75,000 81,000 All sales are on account. Ivanhoe 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, $201.000; December 2022, $277,000

Ivanhoe Company prepares monthly cash budgets. Relevant data from operating budgets for 2023 are as follows: January February Sales $347,000 $396,000 Direct materials purchases 119,000 111,000 Direct labour 84,000 113,000 Manufacturing overhead 59.000 75,000 Selling and administrative expenses 75.000 81,000 All sales are on account. Ivanhoe 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. $201,000; December 2022. $277,000