Danner Company expects to have a cash balance of $47,880 on January 1, 2017. Relevant monthly budget data for the first 2 months of 2017 are as follows. Collections from customers: January $90,440, February $159.600. Payments for direct materials: January $53,200, February $79,800. Direct labor: January $31,920. February $47,880. Wages are paid in the month they are incurred. Manufacturing overhead: January $22,344. February $26,600. These costs include depreciation of $1,596 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $15,960, February $21,280. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $12,768 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $26,600. The company wants to maintain a minimum monthly cash balance of $21,280. Cash Budget For the Two Months Ending February 28, 2017 January Feb Beginning Cash Balance $ 47880 $ Add : 15960 i Total Disbursements 121828 Excess (Deficiency) of Available Cash Over Cash Disbursements 29260 Financing