Danner Company expects to have a cash balance of $59,355 on January 1, 2017. Rel
ID: 2529628 • Letter: D
Question
Danner Company expects to have a cash balance of $59,355 on January 1, 2017. Relevant monthly budget data for the .first 2 months of 2017 are as follows Collections from customers: January $112,115, February $197,850 Payments for direct materials: January $65,950, February s98,925 Direct labor: January $39,570, February s59,355. Wages are paid in the month they are incurred. Manufacturing overhead: January $27,699, February s32,975. These costs indlude depreciation of $1,978 per month. All other overhead costs are paid as incurred Selling and administrative expenses: January $19,785, February s26,380. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $15,828 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $32,975. The company wants to maintain a minimum monthly cash balance of $26,380 Prepare a cash budget for January and February. (Do not feave any answer field blank. Enter 0 for amounts.) DANNER COMPANY Cash Budget For the Two Months Ending February 28, 2017 Janua Februa inning Cash Balance Collections from Custome le of Marketable Securiti otal Available Cash ollections from Customer Sale of Marketable Secuiri otal Available Cash anufacturing Ove rect Material Direct Labor anufacturing Overheac lling and Administrative otal Disbursements ing Cash Balance ddBorrowi epayment nding Cash BalanExplanation / Answer
Danner Company
Cash Budget
For the two month ending 28 february 2017
Particulars
Jan
Feb
Beg. Cash balance
59355
36272
Add: Receipts:
Collections from customers
112115
197850
Sale of short term investments
15828
Total receipts
127943
197850
Total available cash
187298
234122
Less: Disbursements
Payment to suppliers
65950
98925
Wages
39570
59355
Manufacturing overhead
25721
30997
Selling expenses
19785
26380
Total disbursements
151026
215657
Excess (Deficiency) of available cash over disbursements
36272
18465
Financing:
Borrowings
0
7915
Repayments
0
0
Ending cash balance
36272
26380
Danner Company
Cash Budget
For the two month ending 28 february 2017
Particulars
Jan
Feb
Beg. Cash balance
59355
36272
Add: Receipts:
Collections from customers
112115
197850
Sale of short term investments
15828
Total receipts
127943
197850
Total available cash
187298
234122
Less: Disbursements
Payment to suppliers
65950
98925
Wages
39570
59355
Manufacturing overhead
25721
30997
Selling expenses
19785
26380
Total disbursements
151026
215657
Excess (Deficiency) of available cash over disbursements
36272
18465
Financing:
Borrowings
0
7915
Repayments
0
0
Ending cash balance
36272
26380
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.