Plan B Prepare cas cted Tarr pod. n. Compute the gross punt unel all plall.) P24.4A (LO 4) Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. January February Sales $360,000 $400,000 Direct materials purchases 120,000 125,000 Direct labor 90,000 100,000 Manufacturing overhead 70,000 75,000 Selling and administrative expenses 79,000 85,000 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 ma- terials 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 ad. ministrative expenses that include $1,000 of depreciation per month. Other data: 1. Credit sales: November 2019, $250,000: December 2019, $320,000. 2. Purchases of direct materials: December 2019, $100,000. 3. Other receipts: January-collection of December 31, 2019. notes receivable $15,000; February proceeds from sale of securities $6,000. 4. Other disbursements: February--payment of $6,000 cash dividend. rating 1.) Do 2020. Budgetary Planning The company's cash balance on January 1, 2020, is expected to be $60,000. The company wants to maintain a minimum cash balance of $50,000. Instructions a. Prepare schedules for (1) expected collections from customers and (2) expected payments materials purchases for January and February. b. Prepare a cash budget for January and February in columnar form