Danner Company expects to have a cash balance of $$45,000$ on January $1,2020.$ Relevant monthly budget data for the first $2$ months of $2020$ are as follows.

Collections from customers: January $$85,000,$ February $$150,000.$

Payments for direct materials: January $$50,000,$ February $$75,000.$

Direct labor: January $$30,000,$ February $$45,000.$ Wages are paid in the month they are incurred.

Manufacturing overhead: January $$21,000,$ February $$25,000.$ These costs include depreciation of $$1,500$ 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 $$12,000$ in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $$25,000.$ The company wants to maintain a minimum monthly cash balance of $$20,000.$

Prepare a cash budget for January and Febru$$ry$.$

DANNER COMPANY

Cash Budget

January

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