Danner Company expects to have a cash balance of $54,585 on January 1, 2017. Relevant monthly budget data for the first 2 months of 2017 are as follows.

Collections from customers: January $103,105, February $181,950.

Payments for direct materials: January $60,650, February $90,975.

Direct labor: January $36,390, February $54,585. Wages are paid in the month they are incurred.

Manufacturing overhead: January $25,473, February $30,325. These costs include depreciation of $1,819 per month. All other overhead costs are paid as incurred.

Selling and administrative expenses: January $18,195, February $24,260. These costs are exclusive of depreciation. They are paid as incurred.

Sales of marketable securities in January are expected to realize $14,556 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $30,325. The company wants to maintain a minimum monthly cash balance of $24,260.