Cash Budget 1 Martin Company expects to a cash of on January 1, 2017. Relevant monthly data the first 2 months of 2017 are as follows: Collections from customers: January exist246, 500. February exist435,000. Payments for direct materials: January exist155.000 February exist240,000 Direct labor: January exist90,000 February exist135,000 wages are paid in the month they are incurred. Manufacturing overhead: January exist63,000, February exist75.000. These costs include depreciation of exist5.000 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January/exist45,000 February exist 60,000 These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize exist36,000 in cash. Martin Company has a line of credit at the local bank that enables it to borrow up to exist75.000. The company wants to maintain a minimum monthly cash balance of exist60,000. Instructions Prepare a cash budget for January and February. Martin Company's chief financial officer feels that it is important to have data for the entire quarter especially since their financial forecasts indicate some difficult economic periods in the coming year. March information has been budgeted as follows: Collections from customers: exist375,000 Payments for direct materials: exist206,000 Direct labor: Wages paid in March exist116.000 Manufacturing overhead: exist64, 500. This includes the monthly depreciation of exist5,000 Selling and administrative expenses. exist51.600 This cost is exclusive of depreciation. Marketable securities of exist50,000 can be sold if needed for additional cash. Prepare a cash budget for March assuming that the company does not sell the marketable securities. What is the maximum amount the company can borrow during March? Does this provide the company with an adequate ending cash balance? How much does the company need to borrow if the marketable securities are sold? Comment on the status of the company's cash budget for March