Martin Company expects to have a cash balance of $134,100 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows: Collections from customers: January $250,000, February $427,300. Payments for direct materials: January $155,500, February $234,400 Direct labor: January $91,600. February $133,900. Wages are paid in the month they are incurred. Manufacturing overhead: January $63,500, February $73,900. These costs include depreciation of $5,000 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $45,000, February $60,100. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $36,000 in cash. Martin Company has a line of credit at the local bank that enables it to borrow up to $75,600. The company wants to maintain a minimum monthly cash balance of $58,800. Martin Company Cash Budget For the Months Ending February 2020 January February Beginning Cash Balance 134100 134100 69500 69500 Add Add : Receipts Collections from Customers 250000 427300 Sale of Securities 36000 Total Receipts 286000 427300 Total Available Cash 420100 496800 Less Less : Disbursements Direct Materials 155500 234400 Direct Labor 91600 133900 Manufacturing Overhead 58500 68900 Selling and Administrative Expenses 45000 60100 Total Disbursements 350600 497300 Excess (Deficiency) of Available Cash over Cash Disbursements 69500 (500) Financing Less : Repayments Including Interest 59300 Add : Borrowings Ending Cash Balance 69500 58800 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: $372,100 Payments for direct materials: $201,200 Direct labor: Wages paid in March $117,000 Manufacturing overhead: $64,400. This includes the monthly depreciation of $5,000. Selling and administrative expenses: $51,300. This cost is exclusive of depreciation. Marketable securities of $47,400 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