Wildhorse Company prepares monthly cash budgets. Relevant data from operating budgets for 2022 are as follows.

		January		February
Sales		$468,000		$520,000
Direct materials purchases		156,000		162,500
Direct labor		117,000		130,000
Manufacturing overhead		91,000		97,500
Selling and administrative expenses		102,700		110,500

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 $1,300 of depreciation per month. Other data:

1.		Credit sales: November 2021, $325,000; December 2021, $416,000.
2.		Purchases of direct materials: December 2021, $130,000.
3.		Other receipts: JanuaryCollection of December 31, 2021, notes receivable $19,500; FebruaryProceeds from sale of securities $7,800.
4.		Other disbursements: FebruaryPayment of $7,800 cash dividend.

The companys cash balance on January 1, 2022, is expected to be $78,000. The company wants to maintain a minimum cash balance of $65,000.

1. Prepare a cash budget for January and February in columnar form.

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 $ 65,000 $ 0 December 124,800 83,200 January 234,000 140,400 February 0 260,000 Total collections $ 423,800 $ 483,600 Expected Payments for Direct Materials January February December $ 52,000 $ 0 January 93.600 62.400 February 0 97,500 Total payments $ 145.600 159,900 WILDHORSE COMPANY Cash Budget For the Two Months Ending February 28, 2022 January Beginning Cash Balance $ 78,000 $ Add Receipts Collections from Customers Sale of Securities Notes Recevable > Total Receipts Total Avaliable Cash Manufacturing Overhead Selling and Administrative Expenses Cash Dividend Total Disbursements Excess (Deficiency) of Avaliable Cash Over Cash Disbursements Financing