Danner Company expects to have a cash balance of $52,578 on January 1, 2014. Relevant monthly budget data for the first 2 months of 2014 are as follows.

Collections from customers: January $97,155, February $171,450.

Payments for direct materials: January $57,150, February $80,010.

Direct labor: January $34,290, February $51,435. Wages are paid in the month they are incurred.

Manufacturing overhead: January $24,003, February $28,575. These costs include depreciation of $1,143 per month. All other overhead costs are paid as incurred.

Selling and administrative expenses: January $17,145, February $22,860. These costs are exclusive of depreciation. They are paid as incurred.

Sales of marketable securities in January are expected to realize $11,430 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $28,575. The company wants to maintain a minimum monthly cash balance of $22,860. Prepare a cash budget for January and February.

For the Two Months Ending February 28, 2014 February Beginning Cash Balance Add Collections from Customers Sale of Marketable Securities Total Receipts Total Available Cash Less : Direct Labor Selling and Administrative Expenses Selling and Administrative Expenses Total Disbursements Excess (Deficiency) of Available Cash Over Cash Disbursements Financing Borrowings Repayments Ending Cash Balance