Question 11 --/20 View Policies Current Attempt in Progress Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. January February Sales Direct materials purchases $378,000 126,000 94,500 73,500 $420,000 131,250 105,000 78,750 Direct labor Manufacturing overhead Selling and administrative expenses 82,950 89,250 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 $1,050 of depreciation per month. Other data: 1. Credit sales: November 2019, $262,500; December 2019, $336,000. 2. Purchases of direct materials: December 2019, $105,000. 3. Other receipts: January-Collection of December 31, 2019, notes receivable $15,750; February-Proceeds from sale of securities $6,300. 4. Other disbursements: February-Payment of $6,300 cash dividend. The company's cash balance on January 1, 2020, is expected to be $63,000. The company wants to maintain a minimum cash balance of $52,500. Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February Expected Collections from Customers January February November $ December January February Total collections $ Expected Payments for Direct Materials January February December $ January February Total payments $ e Textbook and Media COLTER COMPANY Cash Budget January February