prepare cash budget for January and February

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. 2. 3. 4. Collections from customers: January $89,500; February $109,400. Payments to suppliers: January $40,000; February $49,500. Direct labour: January $29,700; February $35,300. Wages are paid in the month they are incurred. Manufacturing overhead: January $24,900; February $30,300. Overhead costs are paid as incurred. Selling and administrative expenses: January $16,000; February $22,000. These costs do not include depreciation and they are paid as incurred. 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. 5. 6