Question 8 Deitz Corporation is projecting a cash balance of $38,460 in its Dece

Question

Question 8 Deitz Corporation is projecting a cash balance of $38,460 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 $237,170. The schedule of expected payments for direct materials for the first quarter of 2017 shows total payments of $55,126. Other information gathered for the first quarter of 2017 is sale of equipment $3,846; direct labor $89,740, manufacturing overhead $44,870, selling and administrative expenses $57,690; and purchase of securities $17,948. Deitz wants to maintain a balance of at least $32,050 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

Statement showing computations Particulars Amount Beginning Cash Balance             38,460.00 Total Cash collections: Collections from customers           237,170.00 Sale of Equioment                3,846.00 Total Cash collections:           241,016.00 Total Cash Payments: Payment for Direct Materials             55,126.00 Direct Labour             89,740.00 Manufacturing Overhead             44,870.00 Selling and administrative expenses             57,690.00 purchase of securities               17,948.00 Total Cash Payments:           265,374.00 Cash Balance before adj = 38,460 + 241,016 - 265,374             14,102.00 Desired Cash Balance             32,050.00 Amount Borrowed             17,948.00

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.