Sweet Acacia Company expects to have a cash balance of $44,800 on January 1, 2022. Sweet Acacia has budgeted the following for the first two months of the year 2022:

1. Collections from customers: January $90,900; February $109,300.

2. Payments to suppliers: January $39,900; February $49,500.

3. Direct labour: January $29,700; February $35,300. Wages are paid in the month they are incurred.

4. Manufacturing overhead: January $25,000; February $30,200. Overhead costs are paid as incurred.

5. Selling and administrative expenses: January $15,900; February $22,000. These costs do not include depreciation and they are paid as incurred.

6. Sales of investments in January are expected to realize $10,100 in cash. Sweet Acacia Company wants to keep a minimum monthly cash balance of $20,000. Ignore any interest on amounts borrowed.

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