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Danner Company expects to have a cash balance of $48,600 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows Collections from customers: January $91.800. February $162,000 Payments for direct materials: January $54,000, February $81,000. Direct labor: January $32,400, February $48,600. Wages are paid in the month they are incurred. Manufacturing overhead: January $22,680, February $27.000. These costs include depreciation of $1,620 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $16,200, February $21,600. These costs are exclusive of depreciation. They are paid as incurred Sales of marketable securities in January are expected to realize $12.960 in cash Danner Company has a line of credit at a local bank that enables it to borrow up to $27,000. The company wants to maintain a minimum monthly cash balance of $21,600 Prepare a cash budget for January and February Collections from Customers 1200 Sale of Marketable Securities 12.960 Total Receipt 104,760 Th14 by tay 153 360 Less Disbursements Direct Materials 54,000 Director 32.400 Manufacturing Overhead 22.680 Selling and Administrative Expenses 16.200 Total Distres 125.280 Ece (Delof Avatate Cath Over Cash Distorsents 28.000 Finance Add Borrowings 0 Repwments D di Cash Balance 28.080 $

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