Martin Company expects to have a cash balance of $135,000 on January 1, 201?. H monthly budget data for the first 2 months of 201? are as fDHD'tNS: I Collections from customers: January $245,500, February $435,000. I Payments for direct materials: January $155,000, February $240,000 I Direct labor: January $50,000, February $135,000. 1v'v'ages are paid in the mo are incurred. I Manufacturing overhead: January $53,000, February $25,000. These costsi depreciation of $5,000 per month. all other overhead costs are paid as incurr I Selling and administrative expenses: January $45,000, February $50,000. T are exclusive of depreciation. They are paid as incurred. I Sales of marketable securities in January are expected to realize $55,000 in Martin Company has a line of credit at the local bank that enables it to bUWDW $'r'5,000. The company wants to maintain a minimum monthly cash balance 0 instructions (a) Prepare a cash budget for January and February. (b) Martin Company's chief financial officer feels that it is important to have dataf entire quarter especially since their financial forecasts indicate some difficult e periods in the coming year. March information has been budgeted as follows: I Collections from customers: $325,000 I Payments for direct materials: $205,000 I Direct labor: Wages paid in March $115,000 I Manufacturing overhead: $54,500. This includes the monthly depreci $5,000. I Selling and administrative expenses: $51,500. This cost is exclusive depreciation. I Marketable securities of $50,000 can be sold if needed for additional c (1) Prepare a cash budget for March assuming that the company does not sel marketable securities. {2] What is the maximum amount the company can borrow during March? [to provide the company with an adequate ending cash balance? (3] How much does the company need to bUFI'IJW if the marketable securities (4] Comment on the status of the company's cash budget for March