Danner Company expects to have a cash balance of $62,865 on January 1, 2017. Relevant monthly budget data for the first 2 months of 2017 are as follows.

Collections from customers: January $118,745, February $209,550.

Payments for direct materials: January $69,850, February $104,775.

Direct labor: January $41,910, February $62,865. Wages are paid in the month they are incurred.

Manufacturing overhead: January $29,337, February $34,925. These costs include depreciation of $2,095 per month. All other overhead costs are paid as incurred.

Selling and administrative expenses: January $20,955, February $27,940. These costs are exclusive of depreciation. They are paid as incurred.

Sales of marketable securities in January are expected to realize $16,764 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $34,925. The company wants to maintain a minimum monthly cash balance of $27,940.