Danner Company expects to have a cash balance of $52,965 on January 1, 2017. Relevant monthly budget data for the first 2 months of 2017 are as follows. Collections from customers: January $100,045, February $176,550. Payments for direct materials: January $58,850, February $88,275. Direct labor: January $35,310, February $52,965. Wages are paid in the month they are incurred. Manufacturing overhead: January $24,717, February $29,425. These costs include depreciation of $1,765 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $17,655, February $23,540. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $14,124 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $29,425. The company wants to maintain a minimum monthly cash balance of $23,540.

Prepare a cash budget for January and February.

Beginning cash balance ...........

Add: Receipts

Collections from customers ......................

Sale of marketable securities ....................

Total receipts ..............................................

Total available cash ................................................

Less: Disbursements

Direct materials ...........................................

Direct labor ..................................................

Manufacturing overhead ............................

Selling and administrative expenses ........

Total disbursements ..................................

Excess (efficiency) of available cash over cash.............

disbursements.....................................................

Financing

Add Borrowings ....................................................

Less: Repayments ..................................................

Ending cash balance ..............................................

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