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Sheridan Company expects to have a cash balance of $51,300 on January 1,2022. Relevant monthly...

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Accounting

Sheridan Company expects to have a cash balance of $51,300 on January 1,2022. Relevant monthly budget data for the first 2 months of 2022 are as follows.
Collections from customers: January $96,900, February $171,000.
Payments for direct materials: January $57,000, February $85,500.
Direct labor: January $34,200, February $51,300. Wages are paid in the month they are incurred.
Manufacturing ovrhead: January $23,940, February $28,500. These costs include depreciation of $1,710 per month. All other overhead costs are paid as incurred.
Selling and administrative expenses: January $17,100, February $22,800. These costs are exclusive of depreciation. They are paid as incurred.
Sales of marketable securities in January are expected to realize $13,680 in cash. Sheridan Company has a line of credit at a local bank that enables it to borrow up to $28,500. The company wants to maintain a minimum monthly cash balance of $22,800.
Prepare a cash budget for January and February.
SHERIDAN COMPANY
Cash Budget
January
February
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