Danner Company expects to have a cash balance of $51,750 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows.

Collections from customers: January $97,750, February $172,500.

Payments for direct materials: January $57,500, February $86,250.

Direct labor: January $34,500, February $51,750. Wages are paid in the month they are incurred.

Manufacturing overhead: January $24,150, February $28,750. These costs include depreciation of $1,725 per month. All other overhead costs are paid as incurred.

Selling and administrative expenses: January $17,250, February $23,000. These costs are exclusive of depreciation. They are paid as incurred.

Sales of marketable securities in January are expected to realize $13,800 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $28,750. The company wants to maintain a minimum monthly cash balance of $23,000. Prepare a cash budget for January and February.

Apologies for the Small Picture, question is asking to prepare a Cash Budget

Dariner Company expects to have a cash balance of $51,750 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows. Collections from customers: January $97,750, February $172,500. Payments for direct materials: January $57,500, February $86,250. Direct labor: January $34,500, February $51,790. Wages are paid in the month they are incurred. Manufacturing overhead: January $24,150, February 28,750. These costs include depreciation of $1,725 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $17,250, February $23,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $13,000 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $28,750. The company wants to maintain a minimum monthly cash balance of $23,000. Prepare a cash budget for innuary and February DANNER COMPANY Cash Budget January February $ S