Waterway Company expects to have a cash balance of $$44,000$ on January $1,2022.$ Relevant monthly budget data for the first two months of $2022$ are as follows:

Collections from customers: January $$100,000$; February $$156,000$

Payments to suppliers: January $$60,000$; February $$82,000$

Direct labour: January $$30,000$; February $$47,000.$ Wages are paid in the month they are incurred.

Manufacturing overhead: January $$26,000$; February $$29,000.$ These costs include depreciation of $$1,000$ per month. All other overhead costs are paid as incurred.

Selling and administrative expenses: January $$16,000$; February $$20,000.$ These costs are exclusive of depreciation. They are paid as incurred.

Sales of marketable securities in January are expected to realize $$11,000$ in cash.

Waterway Company has a line of credit at a local bank. It can borrow up to $$24,000.$ The company wants to keep a minimum monthly cash balance of $$24,000.$

Prepare a cash budget for January and February.

WATERWAY COMPANY