Vidro company prepares monthly cash budgets. Revevant data from operating budgets for 2012 are: january sales $350,000 february $400,000 direct labor ssles january $120,000 Feburary $110,000 direct labor january 85,000 february 115,000 manufacturing overhead January 60,000 February 75,000 selling and administrative expenses january 75,000 february 80,000. All sales are on account. collections are expected to be 60% in the month of sale, 30% in the first month following the sale,and 10% in the second month following the sale. 30% 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. Depreciation has been excluded from manufacturing overhead and seling and administrative expenses. Other data: 1. credit sales: November 2011, $200,000; December 2011 $280,000. 2.Purchases of direct materials: december 2011, $90,000. 3. Other receipts: January-collection of december 31,2011, interest receivable $3,000; February-proceeds from sale of securities $5,000. 4. other disbursements: February-payment of $20,000 for land. The company's cash balance on January 1, 2012 is expected to be $50,000. The company wants to maintain a minimum cash balance of $40,000.
(A) prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases.
(B) prepare cash budget for january and february in columar form.