Danner Company expects to have a cash balance of $55,800on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows.

Collections from customers: January $105,400, February $186,000.Payments for direct materials: January $62,000, February $93,000.Direct labor: January $37,200, February $55,800. Wages are paid in the month they are incurred.Manufacturing overhead: January $26,040, February $31,000. These costs include depreciation of $1,860per month. All other overhead costs are paid as incurred.Selling and administrative expenses: January $18,600, February $24,800. These costs are exclusive of depreciation. They are paid as incurred.

Sales of marketable securities in January are expected to realize $14,880in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $31,000. The company wants to maintain a minimum monthly cash balance of $24,800.

Prepare a cash budget for January and February.