Current Attempt in Progress

Nadia Company expects to have a cash balance of $44,800on January 1, 2020. Nadia has budgeted the following for the first two months of the year 2020:

1.Collections from customers: January $90,000; February $110,100.2.Payments to suppliers: January $40,300; February $49,700.3.Direct labour: January $29,800; February $35,000. Wages are paid in the month they are incurred.4.Manufacturing overhead: January $24,900; February $29,800. Overhead costs are paid as incurred.5.Selling and administrative expenses: January $16,100; February $21,800. These costs do not include depreciation and they are paid as incurred.6.Sales of investments in January are expected to realize $10,000in cash. Nadia Company wants to keep a minimum monthly cash balance of $20,000.

Make a cash budget for January and February.