Danner Company expects to have a cash balance of $55,350 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows.

Collections from customers: January $104,550, February $184,500.

Payments for direct materials: January $61,500, February $92,250.

Direct labor: January $36,900, February $55,350. Wages are paid in the month they are incurred.

Manufacturing overhead: January $25,830, February $30,750. These costs include depreciation of $1,845 per month. All other overhead costs are paid as incurred.

Selling and administrative expenses: January $18,450, February $24,600. These costs are exclusive of depreciation. They are paid as incurred.

Sales of marketable securities in January are expected to realize $14,760 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $30,750. The company wants to maintain a minimum monthly cash balance of $24,600. Prepare a cash budget for January and February.

DANNER COMPANY Cash Budget January February >