Question - Enright Company expects to have a cash balance of $59,200 on January 1, 2014. These are the relevant monthly budget data for the first two months of 2014.

1 Collections from customers: January $84,200, February $159,200.

2 Payments to suppliers: January $53,200, February $88,200.

3 Wages: January $30,277, February $40,277. Wages are paid in the month they are incurred.

4 Administrative expenses: January $21,277, February $24,277. These costs include depreciation of $1,000 per month. All other costs are paid as incurred.

5 Selling expenses: January $15,277, February $20,277. These costs are exclusive of depreciation. They are paid as incurred.

6 Sales of short-term investments in January are expected to realize $12,277 in cash. Enright has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of $33,200.

Prepare a cash budget for January and February.