Danner Company expects to have a cash balance of $46,035 on
January 1, 2017. Relevant monthly budget data for the first 2
months of 2017 are as follows:
Collections from customers: January $86,955, February $153,450. |
Payments for direct materials: January $51,150, February $76,725. |
Direct labor: January $30,690, February $46,035. Wages are paid in the month they are incurred. |
Manufacturing overhead: January $21,483, February $25,575. These costs include depreciation of $1,535 per month. All other overhead costs are paid as incurred. |
Selling and administrative expenses: January $15,345, February $20,460. These costs are exclusive of depreciation. They are paid as incurred. |
Sales of marketable securities in January are expected to realize
$12,276 in cash. Danner Company has a line of credit at a local
bank that enables it to borrow up to $25,575. The company wants to
maintain a minimum monthly cash balance of $20,460.
Prepare a cash budget for January and February. (Do not
leave any answer field blank. Enter "0" for amounts.)
Answer
Danner Company | ||
Cash Budget | ||
For the two months ending Feb 28, 2017 | ||
January | february | |
Beginning Cash balance | $46,035 | $28,133 |
Add: receipts | ||
Collection from customers | $86,955 | $153,450 |
Sales of marketable securities | $12,276 | $0 |
Total receipts | $99,231 | $153,450 |
Total available Cash | $145,266 | $181,583 |
Less: disbursements | ||
Direct materials | $51,150 | $76,725 |
Direct labor | $30,690 | $46,035 |
Manufacturing overhead | $19,948 | $24,040 |
Selling & Admin expenses | $15,345 | $20,460 |
Total disbursements | $117,133 | $167,260 |
Excess (Deficiency) of available Cash over Cash disbursements | $28,133 | $14,323 |
Financing | ||
Add: Borrowrings | $0 | $6,137 |
Less: repayments | $0 | $0 |
Ending Cash balance | $28,133 | $20,460 |
Danner Company expects to have a cash balance of $46,035 on January 1, 2017. Relevant monthly...
Danner Company expects to have a cash balance of $58,005 on January 1, 2017. Relevant monthly budget data for the first 2 months of 2017 are as follows. Collections from customers: January $109,565, February $193,350. Payments for direct materials: January $64,450, February $96,675. Direct labor: January $38,670, February $58,005. Wages are paid in the month they are incurred. Manufacturing overhead: January $27,069, February $32,225. These costs include depreciation of $1,933 per month. All other overhead costs are paid as incurred....
Danner Company expects to have a cash balance of $52,965 on January 1, 2017. Relevant monthly budget data for the first 2 months of 2017 are as follows. Collections from customers: January $100,045, February $176,550. Payments for direct materials: January $58,850, February $88,275. Direct labor: January $35,310, February $52,965. Wages are paid in the month they are incurred. Manufacturing overhead: January $24,717, February $29,425. These costs include depreciation of $1,765 per month. All other overhead costs are paid as incurred....
Danner Company expects to have a cash balance of $49,950 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows. Collections from customers: January $94,350, February $166,500 Payments for direct materials: January $55,500, February $83,250. Direct labor: January $33,300, February $49,950. Wages are paid in the month they are incurred. Manufacturing overhead: January $23,310, February $27,750. These costs include depreciation of $1,665 per month. All other overhead costs are pa as incurred....
Danner Company expects to have a cash balance of $46,350 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows. Collections from customers: January $87,550, February $154,500. Payments for direct materials: January $51,500, February $77,250. Direct labor: January $30,900, February $46,350. Wages are paid in the month they are incurred. Manufacturing overhead: January $21,630, February $25,750. These costs include depreciation of $1,545 per month. All other overhead costs are paid as incurred....
Danner Company expects to have a cash balance of $54,450 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows. Collections from customers: January $102,850, February $181,500. Payments for direct materials: January $60,500, February $90,750. Direct labor: January $36,300, February $54,450. Wages are paid in the month they are incurred. Manufacturing overhead: January $25,410, February $30,250. These costs include depreciation of $1,815 per month. All other overhead costs are paid as incurred....
Danner Company expects to have a cash balance of $54,000 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows. Collections from customers: January $102,000, February $180,000. Payments for direct materials: January $60,000, February $90,000. Direct labor: January $36,000, February $54,000. Wages are paid in the month they are incurred. Manufacturing overhead: January $25,200, February $30,000. These costs include depreciation of $1,800 per month. All other overhead costs are paid as incurred....
Danner Company expects to have a cash balance of $58,050 on
January 1, 2017. Relevant monthly budget data for the first 2
months of 2017 are as follows.
Collections from customers: January $109,650, February
$193,500.
Payments for direct materials: January $64,500, February
$96,750.
Direct labor: January $38,700, February $58,050. Wages are paid
in the month they are incurred.
Manufacturing overhead: January $27,090, February $32,250.
These costs include depreciation of $1,935 per month. All other
overhead costs are paid as incurred....
Exercise 23-14 Danner Company expects to have a cash balance of $49,500 on January 1, 2017. Relevant monthly budget data for the first 2 months of 2017 are as follows: Collections from customers: January $93,500, February $165,000. Payments for direct materials: January $55,000, February $82,500. Direct labor: January $33,000, February $49,500. Wages are paid in the month they are incurred. Manufacturing overhead: January $23,100, February $27,500. These costs include depreciation of $1,650 per month. All other overhead costs are paid...
Exercise 22-14 (Video) Danner Company expects to have a cash balance of $45,000 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows. Collections from customers: January $85,000, February $150,000. Payments for direct materials: January $50,000, February $75,000. Direct labor: January $30,000, February $45,000. Wages are paid in the month they are incurred. Manufacturing overhead: January $21,000, February $25,000. These costs include depreciation of $1,500 per month. All other overhead costs are...
Need help please
Danner Company expects to have a cash balance of $45,450 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows. Collections from customers: January $85,850, February $151,500. Payments for direct materials: January $50,500, February $75,750. Direct labor: January $30,300, February $45,450. Wages are paid in the month they are incurred. Manufacturing overhead: January $21,210, February $25,250. These costs include depreciation of $1,515 per month. All other overhead costs are...