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Danner Company expects to have a cash balance of $59,040 on January 1, 2017. Relevant monthly...

Danner Company expects to have a cash balance of $59,040 on January 1, 2017. Relevant monthly budget data for the first 2 months of 2017 are as follows.

Collections from customers: January $111,520, February $196,800.
Payments for direct materials: January $65,600, February $98,400.
Direct labor: January $39,360, February $59,040. Wages are paid in the month they are incurred.
Manufacturing overhead: January $27,552, February $32,800. These costs include depreciation of $1,968 per month. All other overhead costs are paid as incurred.
Selling and administrative expenses: January $19,680, February $26,240. These costs are exclusive of depreciation. They are paid as incurred.


Sales of marketable securities in January are expected to realize $15,744 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $32,800. The company wants to maintain a minimum monthly cash balance of $26,240.

Prepare a cash budget for January and February.

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