Crane Company expects to have a cash balance of $$47,700$ on January $1,2022.$ Relevant monthly budget data for the first $2$ months of

$2022$ are as follows.

Collections from customers: January $$90,100,$ February $$159,000.$

Payments for direct materials: January $$53,000,$ February $$79,500.$

Direct labor: January $$31,800,$ February $$47,700.$ Wages are paid in the month they are incurred.

Manufacturing overhead: January $$22,260,$ February $$26,500.$ These costs include depreciation of $$1,590$ per month. All other

overhead costs are paid as incurred.

incurred.

Sales of marketable securities in January are expected to realize $$12,720$ in cash. Crane Company has a line of credit a local

that enables it to borrow up to $$26,500.$ The company wants to maintain a minimum monthly cash $$21,200.$

Prepare a cash budget for January and February.

CRANE COMPANY

Cash Budget