Sunland Company expects to have a cash balance of $54,000 on January 1, 2022. Relevant monthly budget data for the first 2 months of 2022 are as follows. 

Collections from customers: January $102,000, February $180,000. 

Payments for direct materials: January $60,00, February $90,000. 

Direct labor: January $36,000, February $54,000. Wages are paid in the month they are incurred. 

Manufacturing overhead: January $25,200, February $30.000. These costs include depreciation of $1.800 per month. All other overhead costs are paid as incurred. 

Selling and administrative expenses: January $18.000, February $24,000. These costs are exclusive of depreciation. They are paid as incurred. 

Sales of marketable securities in January are expected to realize $14.400 in cash. Sunland Company has a line of credit at a local bank that enables it to borrow up to $30,000, The company wants to maintain a minimum monthly cash balance of $24,000. 

Prepare a cash budget for January and February. SUNLAND COMPANY Cash Budget January February