Your answer is partially correct. Try again Nunez Company expects to have cash balance of $47,000 on January 1, 2020. Relevant monthly budget data for the first two months of 2020 are as follows: Collections from customers: January $102,000; February $157,000 1 Payments to suppliers: January $60,000; February $80,000 Direct labour: January $29,000; February $46,000. Wages are paid in the month they are incurred. 3. Manufacturing overhead: January $24,000; February $31,000. These costs include deepreciation of $1,000 per month. All other overhead costs are paid as incurred 4. Selling and administrative expenses: January $15,000; February $21,000. These costs are exclusive of depreciation. They are paid as incurred. 5 Sales of marketable securities in January are expected to realize $9,000 in cash. 6 local bank. It can borrow up to $24,000. The company wants to keep a minimum monthly cash balance of $31,000 Nunez Company has a line of credit at Prepare a cash budget for January and February. Cash Budget For the Two Months Ending February 29, 2020 Month Feb Total Jan X 78000 47000 31000 Beginning Cash Balance Cash Receipts Add Collection From Customers 157000 259000 102000 Sale Of Marketable Securities 9000 9000 Total Receipts 268000 111000 157000 346000 Total Available Cash 188000 158000 Disbursements Less Direct Materials 60000 80000 140000 Direct Labour 29000 75000 46000 Manufacturing Overhead 24000 31000 55000 Selling And Administrative Expenses 15000 21000 36000 Total Disbursements 178000 306000 128000 Excess of Available Cash Over Cash Disbursements 40000 30000 10000 Financing X Borrowing 1000 21000 22000 Repayment X X Total Financing 22000 1000 21000 X 31000 31000 62000 Ending Cash Balance