Wildhorse Company expects to have a cash balance of $124,200 on January 1, 2022. These are the relevant monthly budget data for the first two months of 2022.

1.		Collections from customers: January $191,700, February $394,200.
2.		Payments to suppliers: January $108,000, February $202,500.
3.		Wages: January $81,000, February $108,000. Wages are paid in the month they are incurred.
4.		Administrative expenses: January $56,700, February $64,800. These costs include depreciation of $2,700 per month. All other costs are paid as incurred.
5.		Selling expenses: January $40,500, February $54,000. These costs are exclusive of depreciation. They are paid as incurred.
6.		Sales of short-term investments in January are expected to realize $32,400 in cash. Wildhorse Company has a line of credit at a local bank that enables it to borrow up to $67,500. The company wants to maintain a minimum monthly cash balance of $54,000.