Question

Derby Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are: -use the following the complete the cash budget
Derby Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are: 5 Sales 6 Direct Material Purchases 7 Direct Labor 8 Manufacturing Overhead 9 Selling and Administrative Expenses 10 Depreciation 11 Interest Received 12 Sale of Investment Securities 13 Purchase of Land 14 Required Ending Cash Balance November $ 201,300 $ 101,100 $ 80,000 $ 62,000 $ 83,000 $ 80,000 $ 6,200 $ 5,000 $ - $ 60,000 December $ 292,375 $ 91,776 $ 90,000 $ 65,000 $ 85,000 $ 80,000 $ 6,000 $ 5,200 $ - $ 60,000 January February $ 351,240 $ 401,213 $ 111,375 $ 119,773 $ 85,000 $ 115,000 $ 60,000 $ 75,000 $ 75,000 $ 80,000 $ 80,000 $ 80,000 $ 6,300 $ 6,100 $ 3,000 $ 2,000 18-May-27$ 15,000 $ 40,000 $ 40,000 NOTE: All items, except DM purchases, are completely paid in the month incurred. 16 Reference for "$0" $0 Sales Collection Percentages 19 Month of sale 20 First Month Following the Sale 21 Second Month Following the Sale 55% 30% 15% DM Payment Percentages 24 Month of purchase 30% 25 Month following the purchase 70% 26 The following was used to complete the Cash Budget 29 Beginning Cash Balance 30 Borrowings 31 Collections from Customers 32 Depreciation 33 Direct Labor 34 Direct Materials 35 Interest Received 36 Manufacturing Overhead 37 Purchase of Land 38 Repayments 39 (Required) Ending Cash Balance 40 Sale of Investment Securities 41 Selling and Adminstrative Expenses 42

Answer 1

Expected Collections from Customers ahmar November ($201.300) December ($292,375)... January (5351,240) February (8401,213)........ Total collections.... SV13 1193,182 143,856 105,372 220667 $369.995 Expected Payments for D February December ($91,776)........ January (8111.375).. February ($119.773). Total payments.... 33.412 35,932 77963 83,841 $161.804 B

Se Aabba Strong No Spac.. Heading 1 Title Subtitle Sulle Em Styles de 53 $133,587 $161,804 DERBY COMPANY Cash Budget the Two Months Ending February 28, 2020 February $ 56,000 $ 40,000 311,090 369.895 eginning cash balance Receipts Collections from customers [See Schedule (1)] Interest Received.. Sale of securities . .. || Total receipts. available cash. 6,300 3,000 | 320,390 376.390 6,100 2.000 377.895 417.995

VABDEL AaBbce ABC Aabel Aabba Emphasis Normal Strong No Spac. Heading 1 Paragraph Su Styles 133.587 161,804 85.000 100,000 75,000 80.000 Less: Disbursements Direct materials... [See Schedule 2] Direct labor. Manufacturing overhead....... Selling and administrative expenses*........ Purchase of Land. Total disbursements.... Excess (deficiency) of available cash over cash disbursements.. Financing Borrowings..... Repayments ... Ending cash balance I . 5,000 (13.809) 53.809 $ 40,000