Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2014 are: January February Sales $360,850 $412,400 Direct materials purchases 113,410 134,030 Direct labor 92,790 103,100 Manufacturing overhead 72,170 77,325 Selling and administrative expenses 81,449 88,666 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 $1,031 of depreciation per month. Other data: 1. Credit sales: November 2013, $268,060; December 2013, $329,920. 2. Purchases of direct materials: December 2013, $103,100. 3. Other receipts: January—Collection of December 31, 2013, notes receivable $15,465; February—Proceeds from sale of securities $6,186. 4. Other disbursements: February—Payment of $5,155 cash dividend. The company’s cash balance on January 1, 2014, is expected to be $61,860. The company wants to maintain a minimum cash balance of $51,550. Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases.