E9.14 (LO 4), AP Danner Company expects to have a cash balance of $45,000 on January 1, 2020. Rel- evant monthly budget data for the first 2 months of 2020 are as follows. Collections from customers: January $85,000. February $150,000. Payments for direct materials: January $50,000, February $75,000. Direct labor: January $30,000, February $45,000. Wages are paid in the month they are incurred. Manufacturing overhead: January $21,000, February $25,000. These costs include depreciation of $1,500 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $15,000. February $20,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $12,000 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants to main- tain a minimum monthly cash balance of $20,000. Instructions Prepare a cash budget for January and February E9.15 (LO 4), AP Deitz Corporation is projecting a cash balance of $30,000 in its December 31, 2019, balance sheet. Deitz's schedule of expected collections from customers for the first quarter of 2020 shows total collections of $185.000. The schedule of expected payments for direct materials for the first quarter of 2020 shows total payments of $43.000. Other information gathered for the first quarter of 2020 is sale of equipment $3.000, direct labor $70,000, manufacturing overhead $35.000, selling and administrative expenses $45,000, and purchase of securities $14,000. Deitz wants to maintain a balance of at least $25,000 cash at the end of each quarter. Instructions Prepare a cash budget for the first quarter