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

		January		February
Sales		$349,000		$402,000
Direct materials purchases		119,000		109,000
Direct labour		84,000		110,000
Manufacturing overhead		61,000		75,000
Selling and administrative expenses		76,000		79,000

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, $278,000
2.	Purchases of direct materials: December 2020, $89,000
3.	Other receipts: Januarycollection of December 31, 2020, notes receivable $6,000; Februaryproceeds from sale of securities $6,000
4.	Other disbursements: Februarypayment of $20,000 for land

The company expects its cash balance on January 1, 2021, to be $50,000. It wants to maintain a minimum cash balance of $39,000.

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

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 $ $ LORCH COMPANY Cash Budget For the Two Months Ending February 28, 2021 Jan Feb Total Beginning cash balance Add: Cash receipts Total receipts Total available cash Less: Disbursements Tatal disbursarrants Excess of cash available over cash disbursements Financing: Borrowing Total Financing Ending cash balance