Vaughn Company expects to have a cash balance of $55,800 on January 1, 2022. Relevant monthly...

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Vaughn Company expects to have a cash balance of $55,800 on January 1, 2022. Relevant monthly budget data for the first 2 months of 2022 are as follows. Collections from customers: January $105,400, February $186,000. Payments for direct materials: January $62,000, February $93,000. Direct labor: January $37,200, February $55,800. Wages are paid in the month they are incurred. Manufacturing overhead: January $26,040, February $31,000. These costs include depreciation of $1,860 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $18,600, February $24,800. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $14,880 in cash. Vaughn Company has a line of credit at a local bank that enables it to borrow up to $31,000. The company wants to maintain a minimum monthly cash balance of $24,800. Prepare a cash budget for January and February. Vaughn Company expects to have a cash balance of $55,800 on January 1, 2022. Relevant monthly budget data for the first 2 months of 2022 are as follows. Collections from customers: January $105,400, February $186,000. Payments for direct materials: January $62,000, February $93,000. Direct labor: January $37,200, February $55,800. Wages are paid in the month they are incurred. Manufacturing overhead: January $26,040, February $31,000. These costs include depreciation of $1,860 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $18,600, February $24,800. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $14,880 in cash. Vaughn Company has a line of credit at a local bank that enables it to borrow up to $31,000. The company wants to maintain a minimum monthly cash balance of $24,800. Prepare a cash budget for January and February.