Martin Company expects to have a cash balance of $136,800 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows:

		Collections from customers: January $246,000, February $436,200.
		Payments for direct materials: January $155,200, February $243,100
		Direct labor: January $91,600, February $132,800. Wages are paid in the month they are incurred.
		Manufacturing overhead: January $62,600, February $76,400. These costs include depreciation of $5,100 per month. All other overhead costs are paid as incurred.
		Selling and administrative expenses: January $44,200, February $60,000. These costs are exclusive of depreciation. They are paid as incurred.
		Sales of marketable securities in January are expected to realize $36,200 in cash. Martin Company has a line of credit at the local bank that enables it to borrow up to $74,400. The company wants to maintain a minimum monthly cash balance of $59,900.

(a)

Prepare a cash budget for January and February.

Martin Company Cash Budget For the Months Ending February 2020
		January		February
Beginning Cash BalanceBorrowingsCollections from CustomersDirect LaborDirect MaterialsDisbursementsEnding Cash BalanceExcess (Deficiency) of Available Cash over Cash DisbursementsFinancingManufacturing OverheadReceiptsRepayments Including InterestSale of SecuritiesSelling and Administrative ExpensesTotal Available CashTotal DisbursementsTotal Receipts		$		$
AddLess: Beginning Cash BalanceBorrowingsCollections from CustomersDirect LaborDirect MaterialsDisbursementsEnding Cash BalanceExcess (Deficiency) of Available Cash over Cash DisbursementsFinancingManufacturing OverheadReceiptsRepayments Including InterestSale of SecuritiesSelling and Administrative ExpensesTotal Available CashTotal DisbursementsTotal Receipts
Beginning Cash BalanceBorrowingsCollections from CustomersDirect LaborDirect MaterialsDisbursementsEnding Cash BalanceExcess (Deficiency) of Available Cash over Cash DisbursementsFinancingManufacturing OverheadReceiptsRepayments Including InterestSale of SecuritiesSelling and Administrative ExpensesTotal Available CashTotal DisbursementsTotal Receipts
Beginning Cash BalanceBorrowingsCollections from CustomersDirect LaborDirect MaterialsDisbursementsEnding Cash BalanceExcess (Deficiency) of Available Cash over Cash DisbursementsFinancingManufacturing OverheadReceiptsRepayments Including InterestSale of SecuritiesSelling and Administrative ExpensesTotal Available CashTotal DisbursementsTotal Receipts
Beginning Cash BalanceBorrowingsCollections from CustomersDirect LaborDirect MaterialsDisbursementsEnding Cash BalanceExcess (Deficiency) of Available Cash over Cash DisbursementsFinancingManufacturing OverheadReceiptsRepayments Including InterestSale of SecuritiesSelling and Administrative ExpensesTotal Available CashTotal DisbursementsTotal Receipts
Beginning Cash BalanceBorrowingsCollections from CustomersDirect LaborDirect MaterialsDisbursementsEnding Cash BalanceExcess (Deficiency) of Available Cash over Cash DisbursementsFinancingManufacturing OverheadReceiptsRepayments Including InterestSale of SecuritiesSelling and Administrative ExpensesTotal Available CashTotal DisbursementsTotal Receipts
		$		$

+ HW-Chapter 9 Question 3 of 8