Danner Company expects to have a cash balance of $62,606 on January 1, 2014. Relevant monthly budget data for the first 2 months of 2014 are as follows.

-Collections from customers: January $115,685, February $204,150.

-Payments for direct materials: January $68,050, February $95,270.

-Direct labor: January $40,830, February $61,245. Wages are paid in the month they are incurred.

-Manufacturing overhead: January $28,581, February $34,025. These costs include depreciation of $1,361 per month. All other overhead costs are paid as incurred. -Selling and administrative expenses: January $20,415, February $27,220. These costs are exclusive of depreciation. They are paid as incurred.

Sales of marketable securities in January are expected to realize $13,610 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $34,025. The company wants to maintain a minimum monthly cash balance of $27,220.

Prepare a cash budget for January and February.