Kukum company expects to have a cash balance of $45,000 on January 1, 2021. Relevant monthly budget data for the first 2 months of 2005 are follows.

Collections: January $75,000, February $150,000

Payments for direct materials: January $45,000, February $70,000

Direct Labour: January $30,000, February $45,000

Manufacturing Overhead: January $21,000, February $30,000

Sales of marketable security are received on January $10,000

The company can borrow up to $25,000 from its overdraft facility at its local bank

The company wants to maintain a minimum monthly cash balance of $20,000

Required

Prepare a cash budget for January and February.