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Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. Sales Direct materiais purchases Direct labor Manufacturing overhead Selling and administrative expenses January $396,000 132,000 99,000 77.000 86,900 February $440,000 137,500 110,000 82,500 93,500 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 $1,100 of depreciation per month Other data: 1. 2. 3. Credit sales: November 2019. $275,000: December 2019. $352,000. Purchases of direct materials: December 2019, $110,000. Other receipts: January-Collection of December 31, 2019, notes receivable $16,500; February-Proceeds from sale of securities $6,600. Other disbursements: February-Payment of $6,600 cash dividend. 4 The company's cash balance on January 1, 2020, is expected to be $66,000. The company wants to maintain a minimum cash balance of $55,000 COLTER COMPANY Cash Budget January Febru a COLTER COMPANY Cash Budget January February Total Receipts Repayments Receipts Excess (Deficiency) of Available Cash Over Cash Disbursements Manufacturing Overhead Total Disbursements Beginning Cash Balance Total Available Cash Sale of Securities Financing Collections from Customers Direct Labor Cash Dividend Notes Receivable Direct Materials Selling and Administrative Expenses Disbursements Ending Cash Balance Borrowings : $

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