Ivanhoe Company expects to have a cash balance of $$51,750$ on January $1,2020.$ Relevant monthly budget data for the first $2$ months of $2020$ are as follows.

Collections from customers: January $$97,750,$ February $$172,500.$

Payments for direct materials: January $$57,500,$ February $$86,250.$

Direct labor: January $$34,500,$ February $$51,750.$ Wages are paid in the month they are incurred.

Manufacturing overhead: January $$24,150,$ February $$28,750.$ These costs include depreciation of $$1,725$ per month. All other overhead costs are paid as incurred.

Selling and administrative expenses: January $$17,250,$ February $$23,000.$ These costs are exclusive of depreciation. They are paid as incurred.

Sales of marketable securities in January are expected to realize $$13,800$ in cash. Ivanhoe Company has a line of credit at a local bank that enables it to borrow up to $$28,750.$ The company wants to maintain a minimum monthly cash balance of $$23,000.$

Prepare a cash budget for January and February.

IVANHOE COMPANY

Cash Budget