Cullumber Company expects to have a cash balance of $58,650 on January 1, 2017. These are the relevant monthly budget data for the first two months of 2017.
1. Collections from customers: January $83,650, February $158,650.
2. Payments to suppliers: January $52,650, February $87,650.
3. Wages: January $31,860 and February $41,860. Wages are paid in the month they are incurred.
4. Administrative expenses: January $22,860 and February $25,860. These costs include depreciation of $1,000 per month. All other costs are paid as incurred.
5. Selling expenses: January $16,860 and February $21,860. These costs are exclusive of depreciation. They are paid as incurred.
6. Sales of short-term investments in January are expected to realize $13,860 in Cash. Cullumber Company 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 $32,650.

Prepare a cash budget for January and February.