Asia Company expects to have a cash balance of $10,000 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows. Collections from customers: January $120,000, February $200,000. Payments for direct materials: January $60,000, February $95,000. Direct labor: January $30,000, February $45,000. Wages are paid in the month they are incurred. Manufacturing overhead: January $26,000, February $41,000. These costs Include depreciation of $1,000 per month. All other overhead costs are paid as Selling and administrative expenses: January $15,000, February $20,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $10,000 in cash. Asia Company has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of $25,000. Instructions Prepare a cash budget for January and February. Date 1 Asla Company Cash Budget For the Two Months Ending February 29, 2020 2 Beginning Cash Balance 3 Add: Receipts 4 Collections from customers 10 5 6 7 Total available cash 8 Less: 9 10 11 12 13 Disbursements Sale of marketable securities Total receipts Direct materials Direct labor Manufacturing overhead Selling and administrative expenses Total disbursements 14 Excess (deficiency) of available cash over cash 15 16 Financing 17 disbursements Borrowings Repayments 18 19 Ending cash balance 20 21 2222 23 Asia Company January Februrary 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 676 19 20 21 22 23