Johnson Company expects to have a cash balance of $51,300 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows:

Collections from customers: January $96,900, February $171,000

Payments for direct materials: January $57,000, February $85,500

Direct Labor: January $34,200, February $51,300. Wages are paid in the month they are incurred.

Manufacturing overhead: January $23,940, February $28,500. These costs include depreciation of $1,710 per month. All other overhead costs are paid as incurred.

Selling and administrative expenses: January $17,100, February $22, 800. These costs are exclusive of depreciation. That are paid as incurred.

Sales of marketable securities in January are expected to realize to $13,680 in cash. Johnson Company has a line of credit at a local bank that enables it to borrow up to $28,500. The company wants to maintain a minimum monthly cash balance of $22,800.

-Prepare a cash budget for January and February

January February

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Beginning cash balance

Add: Receipts

Collections from customers

Sale of marketable securities

Total receipts

Total available cash

Less: Disbursements

Direct materials

Direct labor

Manufacturing overhead

Selling and administrative expenses

Total disbursements

Excess (Deficiency) of available cash over cash disbursements

Financing

Add: Borrowings

Less: Repayments

Ending cash balance