Exercise 24-14 Danner Company expects to have a cash balance of $53,550 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows. Collections from customers: January $101,150, February $178,500 Payments for direct materials: January $59,500, February $89,250. Direct labor: January $35,700, February $53,550. Wages are paid in the month they are incurred Manufacturing overhead: January $24,990, February $29,750. These costs include depreciation of $1,785 per month. All other overhead costs are paid as incurred Selling and administrative expenses: January $17,850, February $23,800. These costs are exclusive of depreciation. They are paid as incurred Sales of marketable securities in January are expected to reallze $14,280 In cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $29,750. The company wants to maintain a minimum monthly cash balance of $23,800 Prepare a cash budget for January and February. DANNER COMPANY Cash Budget January February