Garza Company expects to have a cash balance of $46000 on January 1 2010. Relevant monthly budget data for the first 2 months of 2010 are as follows.
Collections from customers: January $85000 February $150000. Payments for direct materials: January $50000 February $70000.
Direct labor: January $30000 February $45000. Wages are paid in the month they are incurred. Manufacturing overhead: January $21000 February $25000.
These costs include depreciation of $1000 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $15000
February $20000. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize
$10000 in cash. Garza Company has a line of credit at a local bank that enables it to borrow up to $25000. The company wants to maintain a minimum
monthly cash balance of $20000.
Complete the cash budget for January and February. (List amounts from largest to smallest eg 10 5 3 2. If answer is zero please enter 0. Do not leave
any fields blank.)