Ivanhoe Company prepares monthly cash budgets. Relevant data from operating budgets for 2022 are as follows. January February Sales $309.600 $344,000 103,200 107 500 77.400 86,000 Direct materials purchases Direct labor Manufacturing overhead Selling and administrative expenses 60.200 64.500 67.940 73.100 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 $860 of depreciation per month Other data: 1. 2. 3. Credit sales: November 2021, $215,000, December 2021. $275,200, Purchases of direct materials: December 2021. $86,000. Other receipts: January-Collection of December 31, 2021, notes receivable $12.900: February--Proceeds from sale of securities $5,160. Other disbursements: February--Payment of $5,160 cash dividend. 4 The company's cash balance on January 1, 2022, is expected to be $51,600. The company wants to maintain a minimum cash balance of $43,000 Expected Collections from Customers January February November $ 43000 $ December 82560 55040 January 154800 92880 February 172000 Total collections $ 280360 $ 319920 Expected Payments for Direct Materials January February December $ 34400 $ January 61920 41280 February 64500 Total payments $ 96320 $ 105780 >