Please show all work:Lily Company expects to have a cash balance of $$49,500$ on January $1,2022.$ Relevant monthly budget data for the first $2$ months of

$2022$ are as follows.

Collections from customers: January $$93,500,$ February $$165,000.$

Payments for direct materials: January $$55,000,$ February $$82,500.$

Direct labor: January $$33,000,$ February $$49,500.$ Wages are paid in the month they are incurred.

Manufacturing overhead: January $$23,100,$ February $$27,500.$ These costs include depreciation of $$1,650$ per month. All other

overhead costs are paid as incurred.

incurred.

Sales of marketable securities in January are expected to realize $$13,200$ in cash. Lily Company has a line of credit at a local bank that

enables it to borrow up to $$27,500.$ The company wants to maintain a minimum monthly cash of $$22,000.$

Prepare a cash budget for January and February.

LILY COMPANY

Cash Budget