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

January February

Sales

$349,000

$400,000

Direct materials purchases

121,000

109,000

Direct labour

86,000

113,000

Manufacturing overhead

60,000

75,000

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, $202,000; December 2020, $280,000

2.Purchases of direct materials: December 2020, $89,0003.Other receipts: Januarycollection of December 31, 2020, notes receivable $5,000; 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 $49,000. 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

Total$