Please help with the following problem:

BogartyCorporation prepares monthly cash budgets. Here are relevant data from operating budgets for 2017.

January February

Sales $360,000 $400,000

Purchases $120,000 $130,000

Salaries $84,000 $81,000

Administrative expenses $72,000 $75,000

Selling expenses $79,000 $88,000

All sales and purchases are on account. Budgeted collections and disbursement data are given below. All other expenses are paid in the month incurred. Administrative expenses include $1,000 of depreciation per month.

Other data.

1. Collections from customers: January $326,000; February $378,000.
2. Payments for purchases: January $110,000; February $135,000.
3. Other receipts: January: collection of December 31, 2016, notes receivable $15,000; February: proceeds from sale of securities $4,000.
4. Other disbursements: February $10,000 cash dividend.

The company's cash balance on January 1, 2017, is expected to be $46,000. The company wants to maintain a minimum cash balance of $40,000.

Instructions

Prepare a cash budget for January and February. Explain any two (2) of the parts of your calculations.

January 31 cash balance check figure $43,000.