Martin Company expects to have a cash balance of $136,500 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows: Collections from customers: January $243,700, February $428,400. Payments for direct materials: January $152,100, February $232,700 Direct labor: January $90,700, February $136,200. Wages are paid in the month they are incurred. Manufacturing overhead: January $62,600, February $74,900. These costs include depreciation of $5,100 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $45,400, February $60,500. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $35,700 in cash. Martin Company has a line of credit at the local bank that enables it to borrow up to $74,200. The company wants to maintain a minimum monthly cash balance of $59,400. (a) Prepare a cash budget for January and February. Martin Company Cash Budget For the Months Ending February 2020 January $ Februar Beginning Cash Balance 1 $ Add: Receipts Collections from Customers Sale of Securities Total Receipts Total Available Cash Less : Disbursements Direct Materials For the Months Ending February 2020 January Februar Beginning Cash Balance $ $ Add : Receipts Collections from Customers Manufacturing Overhead Selling and Administrative Expenses Total Disbursements Excess (Deficiency) of Available Cash over Cash Disbursements Financing Add : Borrowings > Less : Repayments Including Interest