Problem 9-4A Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows: February January Sales $381,600 $424,000 127,200 Direct materials purchases 132,500 Direct labor 95,400 106,000 74,200 79,500 Manufacturing overhead Selling and administrative expenses 90,100 83,740 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 materials 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 administrative expenses that include $1,060 of depreciation per month. Other data: 1. Credit sales: November 2016, $265,000; December 2016, $339,200. 2. Purchases of direct materials: December 2016, $106,000. 3. other receipts: January-Collection of December 31, 2016, notes receivable $15,900; February-Proceeds from sale of securities $6,360 4. Other disbursements: February-Payment of $6,360 cash dividend. The company's cash balance on January 1, 2017, is expected to be $63,600 he company wants to maintain a minimum cash balance of $53,000