Question

Exercise 9-14 (Video) Your answer is partially correct. Try again, Danner Company expects to have a cash balance of $49,500 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 Collections from customers: January 593,500, February $165,000 Payments for direct materials: January $55,000, February $82,500 Direct labor: January $33,000, February $49,500. Wages are pad in the month they are curred Manufacturing overhead: January 23,100, February $27,500. These costs include depreciation of $1,450 per month. All other ends werd Selling and administrative expenses: January $16.500, February 22,000. These cos e exclusive of depreciation. They are incurred. Sales of marketable securities in January are expected to realize $13,200 inch Dorner Company has a line of credit a local bank has to borrow up to 127.00. The company wants to mantana minimum monthly cash balance of $22,000. Prepare a cash budget for January and February

Answer 1

Amount $ Amount $ 49,500 30,250 1,65,000 93,500 13,200 1,06,700 1,56,200 1,65,000 1,95,250 Danner company Cash budget for the month ending February 28, 2020 :- Particulars Beginning cash balance Add: Receipts Collection from customers Sale of marketable securities Total Receipts Total available cash Less: Disbursements Direct materials Direct labor Manufacturing overhead Selling and administrative overhead Total disbursements Excess/(Deficiency) of available cash over cash disbursements Financing :- Add: Borrowings Less: Repayments Ending cash balance 55,000 33,000 21,450 16,500 1,25,950 30,250 82,500 49,500 25,850 22,000 1,79,850 15,400 6,600 30,250 22,000