E21-10 Hanover Inc. expects to have a cash balance of $46,000 on January 1, 2017. Relevant monthly budget data for the first two months of 2017 are as follows: 1. Collections from customers: January $75,000 February $150,000 2. Payments to suppliers: January $45,000 February $70,000 3. Direct labour: January $30,000 February $45,000 Wages are paid in the month they are incurred. CHAPTER 21 Budgetary Planning 4. Manufacturing overhead: January $21,000 February $30,000 These costs include depreciation of $1,000 per month. All other overhead costs are paid as incurred. 5. Selling and administrative expenses: January $15,000 February $20,000 These costs are exclusive of depreciation. They are paid as incurred. 6. Sales of temporary investments in January are expected to realize $10,000 in cash. 7. Hanover has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants maintain a minimum monthly cash balance of $20,000. Instructions Prepare a cash budget for January and February