Answer and Explanation:
The preparation of cash budget is shown below:-
Cash Budget
January February
Beginning cash balance $1,38,000 $72,000
Add: Receipts:-
Collections from customers$2,13,000 $4,38,000
Sale of marketable securities$36,000 $-
Total receipts $2,49,000 $4,38,000
Total available cash $3,87,000 $5,10,000
Less: Disbursements
Direct materials $1,20,000 $2,25,000
Direct labor $90,000 $1,20,000
Selling and administrative
expenses $1,05,000 $1,29,000
Total disbursements $3,15,000 $4,74,000
Excess
(deficiency of available cash
over cash disbursements) $72,000 $36,000
Financing:
Add: Borrowings $ - $24,000
Ending cash balance $72,000 $60,000