Sandhill Company expects to have a cash balance of $$54,450$ on January $1,2020.$ Relevant monthly budget data for the first $2$ months of $2020$ are as follows.

Collections from customers: January $$102,850,$ February $$181,500.$

Payments for direct materials: January $$60,500,$ February $$90,750.$

Direct labor: January $$36,300,$ February $$54,450.$ Wages are paid in the month they are incurred.

Manufacturing overhead: January $$25,410,$ February $$30,250.$ These costs include depreciation of $$1,815$ per month. All other overhead costs are paid as incurred.

Selling and administrative expenses: January $$18,150,$ February $$24,200.$ These costs are exclusive of depreciation. They are paid as incurred.

Sales of marketable securities in January are expected to realize $$14,520$ in cash. Sandhill Company has a line of credit at a local bank that enables it to borrow up to $$30,250.$ The company wants to maintain a minimum monthly cash balance of $$24,200.$

Prepare a cash budget for January and February.

Current Attempt in Progress

Sandhill Company expects to have a cash balance of $$54,450$ on January $1,2020.$ Relevant monthly budget data for the first $2$ months of $2020$ are as follows.

Collections from customers: January $$102,850,$ February $$181,500.$

Payments for direct materials: January $$60,500,$ February $$90,750.$

Direct labor: January $$36,300,$ February $$54,450.$ Wages are paid in the month they are incurred.

Manufacturing overhead: January $$25,410,$ February $$30,250.$ These costs include depreciation of $$1,815$ per month. All other overhead costs are paid as incurred.

Selling and administrative expenses: January $$18,150,$ February $$24,200.$ These costs are exclusive of depreciation. They are paid as incurred.

Sales of marketable securities in January are expected to realize $$14,520$ in cash. Sandhill Company has a line of credit at a local bank that enables it to borrow up to $$30,250.$ The company wants to maintain a minimum monthly cash balance of $$24,200.$