Lorch Company prepares monthly cash budgets. Relevant data from operating budgets for 2013 are as follows:

		January		February
Sales		$354,800		$398,700
Direct materials purchases		118,700		109,700
Direct labour		84,640		112,130
Manufacturing overhead		59,560		74,670
Selling and administrative expenses		75,440		79,130

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. It pays all other items above in the month incurred, except depreciation expenses. Other data are as follows:

1.	Credit sales: November 2012, $206,700; December 2012, $281,400
2.	Purchases of direct materials: December 2012, $88,480
3.	Other receipts: Januarycollection of December 31, 2012, notes receivable $5,130; Februaryproceeds from sale of securities $5,910
4.	Other disbursements: Februarypayment of $21,510 for land.

The company expects its cash balance on January 1, 2013, to be $50,000. It wants to maintain a minimum cash balance of $40,000.

Please submit the answer in a similar format as above. Thank you.

Prepare schedules for (1) the expected collections from customers Month January February November 20,670 112,560 177,400 December 28,140 141,920 199,350 369,410 January February 310,630 (2) the expected payments for direct materials purchases Month January February December 61,936 January 35,610 83,090 32,910 116,000 February 97,5464 Prepare a cash budget for January and February using columns for each month. LORCH COMPANY Cash Budget For the Two Months Ending February 28, 2013 Jan Feb Total Add: Less