Carla Vista Company expects to have a cash balance of $$115,000$ on January $1,2025.$ These are the relevant monthly budget data for the first two months of $2025.$

Collections from customers: January $$177,500$ and February $$365,000.$

Payments to suppliers: January $$100,000$ and February $$187,500.$

Wages: January $$75,000$ and February $$100,000.$ Wages are paid in the month they are incurred.

Administrative expenses: January $$52,500$ and February $$60,000.$ These costs include depreciation of $$2,500$ per month. All other costs are paid as incurred.

Selling expenses: January $$37,500$ and February $$50,000.$ These costs are exclusive of depreciation. They are paid as incurred.

Sales of short$-$term investments in January are expected to realize $$30,000$ in cash. Carla Vista has a line of credit at a local bank that enables it to borrow up to $$62,500.$ The company wants to maintain a minimum monthly cash balance of $$50,000.$

Prepare a cash budget for January and February. $($List items that increase cash balance first.$)$

CARLA VISTA COMPANY

Cash Budget