China Company expects to have a cash balance of $40,000 on January 1, 2020.

Relevant monthly budget data for the first 2 months of 2017 are as follows.

Collections from customers: January $90,000, 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 incurred.

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.

ChinaCompany 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 commute a cash budget for January and February.