Cullumber Company expects to have a cash balance of $87,400 on January 1, 2022. These are the relevant monthly budget data for the first two months of 2022. 1. Collections from customers: January $134,900, February $277,400. 2. Payments to suppliers: January $76,000, February $142,500. 3. Wages: January $57,000, February $76,000. Wages are paid in the month they are incurred. 4. Administrative expenses: January $39,900, February $45,600. These costs include depreciation of $1,900 per month. All other costs are paid as incurred. 5. Selling expenses: January $28,500, February $38,000. These costs are exclusive of depreciation. They are paid as incurred. 6. Sales of short-term investments in January are expected to realize $22,800 in cash. Cullumber Company has a line of credit at a local bank that enables it to borrow up to $47,500. The company wants to maintain a minimum monthly cash balance of $38,000. Prepare a cash budget for January and February.
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