Exercise 21-14 Your answer is partially correct. Try again. Danner Company expects to have a cash balance $56,115 on January 2017. Relevant monthly budget data for the first 2 months of 2017 are as follows. Collections from customers: January $105,995, February $187,050. Payments for direct materials: January $62,350, February $93,5 25 . Direct labor: January $37,410, February $56,115. Wages are paid in the month they are incurred Manufacturing overhead: January $26,187, February $31,175. These costs include depreciation of $1,870 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $18,705, February $24,940. These costs are exclusive depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $14,964 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $31,175. The company wants to maintain a minimum monthly cash balance of $24,940. Prepare a cash budget for January and February. (Do not leave any answer field blank. Enter 0 for amounts.) DANNER COMPANY Cash Budget For the Two Months Ending February 28, 2017 January February 56115 34292 Beginning Cash Balance Add Receipts Collections from Customers 105995 187050 Sale of Marketable Securities 14964 14964 Total Receipts 202014 120959 (167722) Total Available Cash 177074 Disbursements Less Direct Materials 62350 93525 Direct Labor 37410 56115 Manufacturing Overhead 26187 31175 Selling and Administrative Expenses 18705 24940 Total Disbursements Excess (Deficiency) of Available Cash Over Cash Disbursements Financing Add Borrowings 31175 Add Borrowings 31175 Repayments Less Ending Cash Balance