Dinkle Company prepares monthly cash budgets. Relevant data from operating budgets for 2012 are:

		January		February
	Sales	$350,080		$399,230
	Direct materials purchases	110,950		130,470
	Direct labor	89,030		100,730
	Manufacturing overhead	69,690		76,710
	Selling and administrative expenses	78,710		86,950

All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the first month following the sale, and 20% in the second month following the sale. Sixty percent (60%) of direct materials purchases are paid in cash in the month of purchase, and the balance due is paid in the month following the purchase. All other items above are paid in the month incurred except for selling and administrative expenses that include $1,040 of depreciation per month.

Other data:

1. Credit sales: November 2011, $260,480; December 2011, $320,620.

2. Purchases of direct materials: December 2011, $100,290.

3. Other receipts: January-Collection of December 31, 2011, notes receivable $15,340; February-Proceeds from sale of securities $5,910.

4. Other disbursements: February-Withdrawal of $5,670 cash for personal use of owner, Dewey Yaeger.

The company's cash balance on January 1, 2012, is expected to be $58,930. The company wants to maintain a minimum cash balance of $49,600.