Lorch Company prepares monthly cash budgets. Relevant data from operating budgets for 2021 are as follows:

		January		February
Sales		$351,000		$400,000
Direct materials purchases		119,000		109,000
Direct labour		84,000		113,000
Manufacturing overhead		59,000		74,000
Selling and administrative expenses		76,000		81,000

All sales are on account. Lorch 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 2020, $200,000; December 2020, $281,000
2.	Purchases of direct materials: December 2020, $89,000
3.	Other receipts: Januarycollection of December 31, 2020, notes receivable $4,000; Februaryproceeds from sale of securities $5,000
4.	Other disbursements: Februarypayment of $20,000 for land

The company expects its cash balance on January 1, 2021, to be $51,000. It wants to maintain a minimum cash balance of $40,000.

Prepare schedules for (1) the expected collections from customers.

Month			January		February
November			$		$
December
January
February
			$		$

(2) the expected payments for direct materials purchases.

Month			January		February
December			$		$
January
February
			$		$

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

JdIn TEN TULAI Beginning cash balance $ $ Add: Cash receipts Collection of notes receivable Collection from credit sales - Proceeds from sale of securities - Total receipts Total available cash Less: Disbursements Direct materials Direct labour Manufacturing overhead Selling and administrative expenses Purchase of land Total disbursements Excess of cash available over cash disbursements Financing: Borrowing Less : Repayment Less : Interest expenses Total financing Ending cash balance