Nunez Company expects to have a cash balance of $45,000 on January 1, 2020. Relevant monthly budget data for the first two months of 2020 are as follows:

1.		Collections from customers: January $100,000; February $158,000
2.		Payments to suppliers: January $60,000; February $80,000
3.		Direct labour: January $29,000; February $45,000. Wages are paid in the month they are incurred.
4.		Manufacturing overhead: January $27,000; February $31,000. These costs include depreciation of $1,000 per month. All other overhead costs are paid as incurred.
5.		Selling and administrative expenses: January $14,000; February $21,000. These costs are exclusive of depreciation. They are paid as incurred.
6.		Sales of marketable securities in January are expected to realize $10,000 in cash.

Nunez Company has a line of credit at a local bank. It can borrow up to $26,000. The company wants to keep a minimum monthly cash balance of $26,000. Prepare a cash budget for January and February.

NUNEZ COMPANY Cash Budget For the Two Months Ending February 29, 2020 Month Jan Feb Total