The Crawford Company begins operations with a cash balance of $60000 on January 2013.Relevant quarterly budgeted data pertaining to a cash budget for the first two quarters of the year are as follows:Sales: (1) $140000 (2) $250000. All sales are on account; 60% of the sales are expected to be collected in cash in the period of sale and the balance in the following quarter.Direct materials purchases: (1) $65000 (2) $165000. 40% of each purchase is paid in cash at the time of the purchase and the balance is paid in the following quarter.Direct labor: (1) $40000 (2) $50000. Wages are paid at the time they are incurred.Manufacturing overhead: (1) $35000 (2) $30000. These costs include depreciation of $3200 per quarter. All cash overhead costs are paid as incurred.Selling and administrative expenses: (1) $18000 (2) $19000. These expenses include $1000 of depreciation per quarter. All cash selling and administrative costs are paid when incurred.The company has a line of credit at a local bank that enables it to borrow up to $30000 per quarter. Interest on any loans and income taxes may be ignored.The Crawford Company wants to maintain a minimum quarterly cash balance of $40.000.Instructions(a) Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases.(b) Prepare a cash budget by quarters for the six months ending June 30 2013.