Sheridan Company expects to have a cash balance of $59,450 on January 1, 2017. These are the relevant monthly budget data for the first two months of 2017. 1. Collections from customers: January $84,450, February $159,450. ymensnuary $30,4 40,00 eary $24,400. These costs indde eaocbanktha eables it to0 3. Wages: January $30,400, February $40,400. Wages are paid in the month they are incurred. 4. Administrative expenses: January $21,400, February $24,400. These costs include depreciation of $1,000 per month. All other costs are paid as incurred. 5. Selling expenses: January $15,400, February $20,400. These costs are exclusive of depreciation. They are paid as incurred. 6. Sales of short-term investments in January are expected to realize $12,400 in cash. Sheridan Company has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of $33,450. Prepare a cash budget for January and February. SHERIDAN COMPANY Cash Budget For the Two Months Ending February 28, 2017 January February 59540 Beginning cash balance Add Collections from customers Collections from customers 84450 159450 Sale of short-term investments 12400