Question - Enright Company expects to have a cash balance of $57,920 on January 1, 2014. These are the relevant monthly budget data for the first two months of 2014.

1. Collections from customers: January $82,920, February $157,920.

2. Payments to suppliers: January $51,920, February $86,920.

3. Wages: January $30,208, February $40,208. Wages are paid in the month they are incurred.

4. Administrative expenses: January $21,208, February $24,208. These costs include depreciation of $1,000 per month. All other costs are paid as incurred.

5. Selling expenses: January $15,208, February $20,208. These costs are exclusive of depreciation. They are paid as incurred.

6. Sales of short-term investments in January are expected to realize $12,208 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 $31,920.

Prepare a cash budget for January and February.