Exercise 21-15 Deitz Corporation is projecting a cash balance of $34,020 in its
ID: 2562758 • Letter: E
Question
Exercise 21-15
Deitz Corporation is projecting a cash balance of $34,020 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 $209,790. The schedule of expected payments for direct materials for the first quarter of 2017 shows total payments of $48,762. Other information gathered for the first quarter of 2017 is sale of equipment $3,402; direct labor $79,380, manufacturing overhead $39,690, selling and administrative expenses $51,030; and purchase of securities $15,876. Deitz wants to maintain a balance of at least $28,350 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.)
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DEITZ CORPORATIONCash Budget
March 31, 2017For the Month Ended March 31, 2017For the Quarter Ended March 31, 2017
ReceiptsExcess of Available Cash Over Cash DisbursementsEnding Cash BalanceDisbursementsTotal Available CashTotal ReceiptsBeginning Cash BalanceFinancingTotal DisbursementsManufacturing OverheadPurchase of SecuritiesRepaymentsDirect MaterialsDirect LaborBorrowingsCollections from CustomersSale of EquipmentSelling and Administrative Expenses
$AddLess
:Beginning Cash BalanceTotal DisbursementsManufacturing OverheadDirect LaborDirect MaterialsSelling and Administrative ExpensesSale of EquipmentCollections from CustomersReceiptsPurchase of SecuritiesDisbursementsTotal ReceiptsEnding Cash BalanceRepaymentsTotal Available CashFinancingBorrowingsExcess of Available Cash Over Cash Disbursements
Financing Selling and Administrative Expenses Direct Labor Manufacturing Overhead Total Available Cash Purchase of Securities Direct Materials Total Disbursements Receipts Disbursements Repayments Borrowings Total Receipts Beginning Cash Balance Ending Cash Balance Sale of Equipment Excess of Available Cash Over Cash Disbursements Collections from Customers
Financing Total Disbursements Direct Materials Selling and Administrative Expenses Beginning Cash Balance Total Receipts Sale of Equipment Disbursements Manufacturing Overhead Ending Cash Balance Purchase of Securities Receipts Repayments Excess of Available Cash Over Cash Disbursements Total Available Cash Borrowings Collections from Customers Direct Labor
Sale of Equipment Selling and Administrative Expenses Direct Materials Purchase of Securities Manufacturing Overhead Receipts Total Available Cash Total Disbursements Ending Cash Balance Disbursements Total Receipts Repayments Beginning Cash Balance Borrowings Excess of Available Cash Over Cash Disbursements Direct Labor Collections from Customers Financing
Purchase of SecuritiesDirect MaterialsManufacturing OverheadSelling and Administrative ExpensesFinancingReceiptsExcess of Available Cash Over Cash DisbursementsTotal Available CashTotal DisbursementsTotal ReceiptsRepaymentsSale of EquipmentBeginning Cash BalanceDisbursementsDirect LaborBorrowingsEnding Cash BalanceCollections from Customers
AddLess
:Total ReceiptsRepaymentsBorrowingsReceiptsManufacturing OverheadBeginning Cash BalanceFinancingSale of EquipmentDirect MaterialsExcess of Available Cash Over Cash DisbursementsSelling and Administrative ExpensesTotal Available CashPurchase of SecuritiesTotal DisbursementsCollections from CustomersEnding Cash BalanceDirect LaborDisbursements
Financing Beginning Cash Balance Total Receipts Borrowings Manufacturing Overhead Excess of Available Cash Over Cash Disbursements Ending Cash Balance Collections from Customers Direct Labor Total Disbursements Direct Materials Disbursements Repayments Receipts Sale of Equipment Purchase of Securities Selling and Administrative Expenses Total Available Cash
Beginning Cash Balance Borrowings Excess of Available Cash Over Cash Disbursements Financing Manufacturing Overhead Purchase of Securities Receipts Repayments Sale of Equipment Direct Materials Selling and Administrative Expenses Total Available Cash Total Disbursements Total Receipts Collections from Customers Disbursements Direct Labor Ending Cash Balance
Total Receipts Selling and Administrative Expenses Total Available Cash Disbursements Sale of Equipment Total Disbursements Receipts Direct Materials Purchase of Securities Beginning Cash Balance Borrowings Manufacturing Overhead Ending Cash Balance Financing Direct Labor Excess of Available Cash Over Cash Disbursements Repayments Collections from Customers
Beginning Cash Balance Collections from Customers Purchase of Securities Sale of Equipment Selling and Administrative Expenses Ending Cash Balance Total Available Cash Total Disbursements Total Receipts Excess of Available Cash Over Cash Disbursements Financing Manufacturing Overhead Receipts Repayments Borrowings Direct Labor Direct Materials Disbursements
Selling and Administrative Expenses Total Receipts Direct Labor Total Disbursements Total Available Cash Receipts Disbursements Excess of Available Cash Over Cash Disbursements Collections from Customers Beginning Cash Balance Borrowings Sale of Equipment Financing Ending Cash Balance Manufacturing Overhead Direct Materials Purchase of Securities Repayments
Direct Materials Direct Labor Borrowings Purchase of Securities Total Receipts Beginning Cash Balance Receipts Disbursements Ending Cash Balance Excess of Available Cash Over Cash Disbursements Total Disbursements Repayments Sale of Equipment Selling and Administrative Expenses Total Available Cash Financing Collections from Customers Manufacturing Overhead
Manufacturing OverheadDirect LaborDirect MaterialsSale of EquipmentReceiptsPurchase of SecuritiesBorrowingsDisbursementsRepaymentsCollections from CustomersEnding Cash BalanceTotal DisbursementsExcess of Available Cash Over Cash DisbursementsBeginning Cash BalanceTotal Available CashTotal ReceiptsFinancingSelling and Administrative Expenses
RepaymentsBeginning Cash BalanceBorrowingsExcess of Available Cash Over Cash DisbursementsFinancingDirect MaterialsTotal DisbursementsSale of EquipmentManufacturing OverheadDisbursementsEnding Cash BalanceDirect LaborPurchase of SecuritiesCollections from CustomersReceiptsSelling and Administrative ExpensesTotal ReceiptsTotal Available Cash
LessAdd
:Sale of EquipmentFinancingEnding Cash BalanceBorrowingsBeginning Cash BalanceExcess of Available Cash Over Cash DisbursementsManufacturing OverheadPurchase of SecuritiesCollections from CustomersReceiptsDirect LaborRepaymentsTotal ReceiptsDirect MaterialsSelling and Administrative ExpensesTotal Available CashTotal DisbursementsDisbursements
LessAdd
:Collections from CustomersEnding Cash BalanceSale of EquipmentExcess of Available Cash Over Cash DisbursementsRepaymentsTotal Available CashFinancingManufacturing OverheadDisbursementsSelling and Administrative ExpensesPurchase of SecuritiesBorrowingsTotal DisbursementsTotal ReceiptsDirect LaborBeginning Cash BalanceDirect MaterialsReceipts
BorrowingsReceiptsTotal ReceiptsRepaymentsManufacturing OverheadPurchase of SecuritiesSale of EquipmentBeginning Cash BalanceCollections from CustomersSelling and Administrative ExpensesExcess of Available Cash Over Cash DisbursementsEnding Cash BalanceDirect MaterialsTotal DisbursementsTotal Available CashDirect LaborFinancingDisbursements
$Explanation / Answer
SOLUTION
Cash Budget
Amount ($) Amount ($) Beginning Cash Balance 34,020 Add: Receipts Collections from Customers 209,790 Sale of Equipment 3,402 Total Receipts 213,192 Total Available Cash (A) 247,212 Less: Disbursements Direct Materials 48,762 Direct Labor 79,380 Manufacturing Overhead 39,690 Selling and Administrative Expenses 51,030 Purchase of Securities 15,876 Total Disbursements (B) 234,738 Excess (Deficiency) of Available Cash Over Cash Disbursements (A-B) 12,474 Financing: Add: Borrowings 15,876 Ending Cash Balance 28,350Related Questions
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