Exercise 9-15 Deitz Corporation is projecting a cash balance of $34,860 in its D

Question

Exercise 9-15 Deitz Corporation is projecting a cash balance of $34,860 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 $214,970. The schedule of expected payments for direct materials for the first quarter of 2017 shows total payments of $19,966. Other information gathered for the first quarter of 2017 is sale of equipment $3,486; direct labor $81,340, manufacturing overhead $40,670, selling and administrative expenses $52,290; and purchase of securities S16,268. Deitz wants to maintain a balance of at least $29,050 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

Explanation / Answer

Cash Budget: Cash balance in beginning 34860 Add: Expected reciepts Collections from customer 214970 Sale of equipment 3486 Total collections 218456 Total cash available 253316 Less: Disbursement Cash payment for material 49966 Direct labour 81340 manufacturing OH 40670 Purchase of securities 16268 Selling and admin oh 52290 Total Disbursement 240534 Net cash available 12782 Refinance: Add: Borrowings 16268 Less: Repayment 0 Ending balance of cash 29050

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