Nadia Company expects to have a cash balance of $45,200 on January 1, 2020. Nadia has budgeted the following for the first two months of the year 2020:

1. Collections from customers: January $90,900; February $108,900. 2. Payments to suppliers: January $39,600; February $50,500. 3. Direct labour: January $29,800; February $35,000. Wages are paid in the month they are incurred. 4. Manufacturing overhead: January $24,900; February $30,300. Overhead costs are paid as incurred. 5. Selling and administrative expenses: January $16,100; February $22,100. These costs do not include depreciation and they are paid as incurred. 6. Sales of investments in January are expected to realize $9,900 in cash. Nadia Company wants to keep a minimum monthly cash balance of $20,000.

Prepare a cash budget for January and February.

NADIA COMPANY Cash Budget For 2020 January February

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$ $