Danner Company expects to have a cash balance of $56,250 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are a follows. Collections from customers: January $106,250, February $187,500. Payments for direct materials: January $62,500, February $93,750. Direct labor: January $37,500, February $56,250. Wages are paid in the month they are incurred. Manufacturing overhead: January $26,250, February $31,250. These costs include depreciation of $1,875 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $18,750, February $25,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $15,000 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $31,250. The company wants to maintain a minimum monthly cash balance of $25,000. Prepare a cash budget for January and February. DANNER COMPANY Cash Budget January February