Sheridan Company expects to have a cash balance of $39,600 on January 1, 2022. Relevant monthly budget data for the first 2 months of 2022 are as follows. Collections from customers: January $74,800, February $132,000. Payments for direct materials: January $44,000, February $66,000. Direct labor: January $26,400, February $39,600. Wages are paid in the month they are incurred. Manufacturing overhead: January $18,480, February $22,000. These costs include depreciation of $1,320 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $13,200, February $17,600. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $10,560 in cash. Sheridan Company has a line of credit at a local bank that enables it to borrow up to $22,000. The company wants to maintain a minimum monthly cash balance of $17,600. Prepare a cash budget for January and February. E

SHERIDAN COMPANY Cash Budget January February 5 $ Sheridan Company expects to have a cash balance of $39.600 on January 1,2022. Relevant monthly budget data for the first 2 months of 2022 are as follows Collections from customers: January $74,800, February $132,000 Payments for direct materials: January $44,000, February $66,000 Direct labor: January $26,400. February $39,600. Wages are paid in the month they are incurred. Manufacturing overhead: January $18,480, February $22,000. These costs include depreciation of $1,320 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $13,200. February $17,600. These conts are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $10,560 in cash. Sheridan Company has a line of credit at a local bank that enables it to borrow up to $22,000. The company wants to maintain a minimum monthly cash balance of $17,600. Prepare a cash budget for January and February