Sheridan Company expects to have a cash balance of $$51,300$ on January $1,2022.$ Relevant monthly budget data for the first $2$ months of $2022$ are as follows.

Collections from customers: January $$96,900,$ February $$171,000.$

Payments for direct materials: January $$57,000,$ February $$85,500.$

Direct labor: January $$34,200,$ February $$51,300.$ Wages are paid in the month they are incurred.

Manufacturing ov$$rhead: January $$23,940,$ February $$28,500.$ These costs include depreciation of $$1,710$ per month. All other overhead costs are paid as incurred.

Selling and administrative expenses: January $$17,100,$ February $$22,800.$ These costs are exclusive of depreciation. They are paid as incurred.

Sales of marketable securities in January are expected to realize $$13,680$ in cash. Sheridan Company has a line of credit at a local bank that enables it to borrow up to $$28,500.$ The company wants to maintain a minimum monthly cash balance of $$22,800.$

Prepare a cash budget for January and February.

SHERIDAN COMPANY

Cash Budget

January

February