Blue Company prepares monthly cash budgets

Blue Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows: 
January February Sales $430,560 $478,900 Direct materials purchases 143,520 149,500 Direct labor 107,640 119,600 Manufacturing overhead 83,720 89,700 Selling and administrative expenses 94,484 101,660 
All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the rst 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 $1,196 of depreciation per month. 
Other data: 
1. Credit sales: November 2016, $299,000; December 2016, $382,720. 2. Purchases of direct materials: December 2016, $119,600. 3. Other receipts: January—Col lection of December 31,2016, notes receivable $17,940) February—Proceeds from sale of securities $7,176. 4. Other disbursements: February—Payment of $7,176 cash dividend. 
The company's cash balance on January 1,2017, is expected to be $71,760. The company wants to maintain a minimum cash balance of $59,800. 
Prepare schedules for (1) expected collections f rom customers and (2) expected payments for direct materials purchases for January and February