Question

Exercise 21-15

Deitz Corporation is projecting a cash balance of $36,960 in its December 31, 2016, balance sheet. Deitz’s schedule of expected collections from customers for the first quarter of 2017 shows total collections of $227,920. The schedule of expected payments for direct materials for the first quarter of 2017 shows total payments of $52,976. Other information gathered for the first quarter of 2017 is sale of equipment $3,696; direct labor $86,240, manufacturing overhead $43,120, selling and administrative expenses $55,440; and purchase of securities $17,248. Deitz wants to maintain a balance of at least $30,800 cash at the end of each quarter.

Prepare a cash budget for the first quarter. (Do not leave any answer field blank. Enter 0 for amounts.)

DEITZ CORPORATION Cash Budget March 31, 2017For the Quarter Ended March 31, 2017For the Month Ended March 31, 2017
Direct LaborCollections from CustomersDirect MaterialsEnding Cash BalanceTotal Available CashSale of EquipmentExcess of Available Cash Over Cash DisbursementsSelling and Administrative ExpensesBeginning Cash BalanceDisbursementsRepaymentsFinancingTotal ReceiptsManufacturing OverheadPurchase of SecuritiesBorrowingsReceiptsTotal Disbursements		$
AddLess : BorrowingsRepaymentsSale of EquipmentDirect LaborSelling and Administrative ExpensesReceiptsTotal DisbursementsDirect MaterialsTotal Available CashTotal ReceiptsBeginning Cash BalanceDisbursementsCollections from CustomersEnding Cash BalanceFinancingExcess of Available Cash Over Cash DisbursementsPurchase of SecuritiesManufacturing Overhead
Purchase of Securities    Total Receipts    Beginning Cash Balance    Direct Materials    Manufacturing Overhead    Borrowings    Total Disbursements    Selling and Administrative Expenses    Total Available Cash    Collections from Customers    Receipts    Sale of Equipment    Direct Labor    Disbursements    Ending Cash Balance    Excess of Available Cash Over Cash Disbursements    Financing    Repayments
Disbursements    Beginning Cash Balance    Sale of Equipment    Collections from Customers    Borrowings    Total Disbursements    Purchase of Securities    Selling and Administrative Expenses    Total Available Cash    Direct Labor    Ending Cash Balance    Total Receipts    Direct Materials    Excess of Available Cash Over Cash Disbursements    Financing    Manufacturing Overhead    Receipts    Repayments
Direct Materials    Repayments    Manufacturing Overhead    Financing    Selling and Administrative Expenses    Purchase of Securities    Disbursements    Ending Cash Balance    Excess of Available Cash Over Cash Disbursements    Total Available Cash    Receipts    Direct Labor    Sale of Equipment    Total Disbursements    Total Receipts    Beginning Cash Balance    Borrowings    Collections from Customers
FinancingDisbursementsTotal Available CashExcess of Available Cash Over Cash DisbursementsTotal DisbursementsTotal ReceiptsReceiptsBeginning Cash BalanceBorrowingsCollections from CustomersEnding Cash BalanceDirect LaborManufacturing OverheadPurchase of SecuritiesRepaymentsDirect MaterialsSale of EquipmentSelling and Administrative Expenses
AddLess : Total DisbursementsPurchase of SecuritiesDisbursementsBorrowingsReceiptsExcess of Available Cash Over Cash DisbursementsFinancingCollections from CustomersRepaymentsManufacturing OverheadDirect LaborSale of EquipmentSelling and Administrative ExpensesTotal Available CashTotal ReceiptsBeginning Cash BalanceDirect MaterialsEnding Cash Balance
Manufacturing Overhead    Disbursements    Direct Labor    Selling and Administrative Expenses    Ending Cash Balance    Total Receipts    Purchase of Securities    Receipts    Repayments    Excess of Available Cash Over Cash Disbursements    Financing    Total Disbursements    Sale of Equipment    Beginning Cash Balance    Borrowings    Total Available Cash    Collections from Customers    Direct Materials
Ending Cash Balance    Purchase of Securities    Excess of Available Cash Over Cash Disbursements    Total Receipts    Financing    Direct Materials    Disbursements    Borrowings    Sale of Equipment    Manufacturing Overhead    Receipts    Selling and Administrative Expenses    Direct Labor    Total Available Cash    Repayments    Total Disbursements    Beginning Cash Balance    Collections from Customers
Disbursements    Collections from Customers    Total Disbursements    Sale of Equipment    Excess of Available Cash Over Cash Disbursements    Selling and Administrative Expenses    Total Receipts    Financing    Total Available Cash    Manufacturing Overhead    Direct Labor    Borrowings    Beginning Cash Balance    Purchase of Securities    Receipts    Direct Materials    Repayments    Ending Cash Balance
Total Available Cash    Manufacturing Overhead    Total Disbursements    Financing    Total Receipts    Purchase of Securities    Receipts    Selling and Administrative Expenses    Beginning Cash Balance    Borrowings    Excess of Available Cash Over Cash Disbursements    Collections from Customers    Repayments    Sale of Equipment    Direct Labor    Direct Materials    Disbursements    Ending Cash Balance
Excess of Available Cash Over Cash Disbursements    Beginning Cash Balance    Repayments    Direct Labor    Direct Materials    Disbursements    Financing    Selling and Administrative Expenses    Manufacturing Overhead    Borrowings    Total Disbursements    Receipts    Ending Cash Balance    Total Available Cash    Purchase of Securities    Collections from Customers    Sale of Equipment    Total Receipts
Direct Materials    Direct Labor    Disbursements    Purchase of Securities    Receipts    Total Receipts    Sale of Equipment    Selling and Administrative Expenses    Ending Cash Balance    Excess of Available Cash Over Cash Disbursements    Financing    Repayments    Total Available Cash    Total Disbursements    Beginning Cash Balance    Borrowings    Collections from Customers    Manufacturing Overhead
Excess of Available Cash Over Cash DisbursementsRepaymentsManufacturing OverheadSale of EquipmentTotal ReceiptsFinancingDisbursementsDirect LaborReceiptsEnding Cash BalanceTotal Available CashTotal DisbursementsSelling and Administrative ExpensesBeginning Cash BalanceBorrowingsCollections from CustomersDirect MaterialsPurchase of Securities
RepaymentsEnding Cash BalanceTotal Available CashSelling and Administrative ExpensesTotal DisbursementsBeginning Cash BalanceTotal ReceiptsExcess of Available Cash Over Cash DisbursementsPurchase of SecuritiesBorrowingsSale of EquipmentDirect MaterialsDisbursementsFinancingManufacturing OverheadReceiptsDirect LaborCollections from Customers
AddLess : Selling and Administrative ExpensesTotal ReceiptsBorrowingsReceiptsBeginning Cash BalanceRepaymentsDirect LaborExcess of Available Cash Over Cash DisbursementsCollections from CustomersDirect MaterialsDisbursementsManufacturing OverheadEnding Cash BalanceFinancingPurchase of SecuritiesTotal DisbursementsSale of EquipmentTotal Available Cash
LessAdd : Beginning Cash BalanceTotal Available CashReceiptsCollections from CustomersDirect MaterialsManufacturing OverheadDirect LaborPurchase of SecuritiesTotal DisbursementsTotal ReceiptsBorrowingsDisbursementsEnding Cash BalanceRepaymentsExcess of Available Cash Over Cash DisbursementsSelling and Administrative ExpensesFinancingSale of Equipment
Total ReceiptsSale of EquipmentSelling and Administrative ExpensesDirect LaborTotal DisbursementsReceiptsDirect MaterialsBeginning Cash BalanceBorrowingsFinancingCollections from CustomersDisbursementsEnding Cash BalanceExcess of Available Cash Over Cash DisbursementsManufacturing OverheadPurchase of SecuritiesTotal Available CashRepayments		$

Answer 1

DEITZ CORPORATION
Cash Budget
For the Quarter Ended March 31, 2017
Beginning cash balance		$     36,960
Add: Receipts
Collections from Customers	$   227,920
Receipts    Sale of Equipment	$       3,696
Total Receipts		$   231,616
Total Available Cash		$   268,576
Less: Disbursements
Manufacturing Overhead	$     43,120
Direct Labor	$     86,240
Selling and Administrative Expenses	$     55,440
Direct Materials	$     52,976
Purchase of Securities	$     17,248
Total Disbursements		$   255,024
Excess of Available Cash Over Cash Disbursements		$     13,552
Financing
Add: Borrowings ($30,800-$13,552)		$     17,248
Less: Repayments
Ending Cash Balance		$30,800

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