Danner Company expects to have a cash balance of $45,900 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows. Collections from customers: January $86,700, February $153,000. Payments for direct materials: January $51,000, February $76,500. Direct labor: January $30,600, February $45,900. Wages are paid in the month they are incurred. Manufacturing overhead: January $21,420, February $25,500. These costs include depreciation of $1,530 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $15,300, February $20,400. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $12,240 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $25,500. The company wants to maintain a minimum monthly cash balance of $20,400. Prepare a cash budget for January and February.

DANNER COMPANY Cash Budget Januar February Danner Company expects to have a cash balance of $45,900 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows. Collections from customers: January $86,700, February $153,000. Payments for direct materials: January $51,000, February $76,500. Direct labor: January $30,600, February $45,900. Wages are paid in the month they are incurred. Manufacturing overhead: January $21,420, February $25,500. These costs include depreciation of $1,530 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $15,300, February $20,400. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $12,240 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $25,500. The company wants to maintain a minimum monthly cash balance of $20,400. Prepare a cash budget for January and February