Danner Company expects to have a cash balance of $47,700 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 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.

Selling and administrative expenses: January $15,900, February $21,200. These costs are exclusive of depreciation. They are paid as incurred.

Sales of marketable securities in January are expected to realize $12,720 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $26,500. The company wants to maintain a minimum monthly cash balance of $21,200. Prepare a cash budget for January and February.

DANNER COMPANY Cash Budget For the Two Months Ending February 28, 2020 Beginning Cash Balance January Add : Receipts v Collections from Customers Sale of Marketable Securities Total Available Cash \begin{tabular}{l} Less v : \\ \hline \\ \\ \hline \end{tabular} Ending Cash Balance $