Martin Company expects to have a cash balance of $132,800 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows: Collections from customers: January $247,500, February $436,300. Payments for direct materials: January $153,100, February $238,000 Direct labor: January $91,100, February $136,000. Wages are paid in the month they are incurred. Manufacturing overhead: January $61,800, February $75,600. These costs include depreciation of $4,900 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $45,500, February $61,100. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $35,300 in cash. Martin Company has a line of credit at the local bank that enables it to borrow up to $76,500. The company wants to maintain a minimum monthly cash balance of $59,300. Prepare a cash budget for January and February Martin Company Cash Budget For the Months Ending February 2020 January $ Cash Budget For the Months Ending February 2020 January February Beginning Cash Balance Borrowings Collections from Customers Direct Labor Direct Materials Disbursements Ending Cash Balance Excess (Deficiency) of Available Cash over Cash Disbursements Financing Manufacturing Overhead Receipts Repayments including interest Sale of Securities Selling and Administrative Expenses Total Available Cash Total Disbursements Total Receipts Martin Company's chief financial officer feels that it is important to have data for the entire quarter especially since their financial forecasts indicate some difficult economic periods in the coming year. March information has been budgeted as follows: Collections from customers: $375,700 Payments for direct materials: $209,600 Direct labor: Wages paid in March $113,800 Manufacturing overhead: $63,600. This includes the monthly depreciation of $4,900. Selling and administrative expenses: $51,000. This cost is exclusive of depreciation Marketable securities of $47,200 can be sold if needed for additional cash. Prepare a cash budget for March assuming that the company does not sell the marketable securities Martin Company Cash Budget For the Month Ending March 2020 What is the maximum amount the company can borrow during March? Maximum amount the company can borrow Does this provide the company with an adequate ending cash balance? Borrowing this amount Martin Company with their minimum ending cash balance e Textbook and Media How much does the company need to borrow if the marketable securities are sold? Company needs to borrow $