Danner Company expects to have a cash balance of $46,800 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows.

Collections from customers: January $88,400, February $156,000.

Payments for direct materials: January $52,000, February $78,000.

Direct labor: January $31,200, February $46,800. Wages are paid in the month they are incurred.

Manufacturing overhead: January $21,840, February $26,000. These costs include depreciation of $1,560 per month. All other overhead costs are paid as incurred.

Selling and administrative expenses: January $15,600, February $20,800. These costs are exclusive of depreciation. They are paid as incurred.

Sales of marketable securities in January are expected to realize $12,480 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $26,000. The company wants to maintain a minimum monthly cash balance of $20,800. Prepare a cash budget for January and February.