Ybarra Inc. prepares monthly cash budgets. The relevant data from operating budgets for 2010.

All sales and purchases are on account. Collections and disbursement data are given below. All other items above are paid in the month incurred. Depreciation has been excluded from selling and administrative expenses.
Other data.
1. Collections from customers: January $297,000; February $358,000.
2. Payments for purchases: January $98,000; February $118,000.
3. Other receipts: January: collection of December 31, 2009, interest receivable $2,000;
February: proceeds from sale of short-term investments $8,000
4. Other disbursements: February payment of $20,000 for land
The company€™s cash balance on January 1, 2010, is expected to be $60,000. The company wants to maintain a minimum cash balance of $40,000.

Instructions
Prepare a cash budget for January andFebruary.

January February $330,000 $400,000 130,000 95,000 Selling and administrative expenses 135,000 150,000 Sales Purchases Salaries 110,000 80,000