Help 5:36 PM a NEXT RCES Exercise 9-14 evel Danner Company expects to have a cas

Question

Help 5:36 PM a NEXT RCES Exercise 9-14 evel Danner Company expects to have a cash balance of $52,470 on January 1, 2017. Relevant monthly budget data for the first 2 months of 2017 are as follows. Collections from customers: January $99,110, February $174,900. Payments for direct materials: January $58,300, February $87,450. Direct labor: January $34,980, February $52,470. Wages are paid in the month they are incurred. overhead: January $24,486, February $29,150. These costs include depreciation of $1,749 per month. All other overhead costs are Selling and administrative expenses: January $17,490, February $23,320. These costs are exclusive of depreciation. They are paid as incurred of 2 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $29,150. The company wants to maintain a minimum monthly cash balance of $23,320. a cash budget for January and February. (Do not leave any answer field blank. Enter "O" for the amounts.)

Explanation / Answer

Cash budget Jan Feb Beginning Balance of cash 52470 32065 Add:Reciepts Collections from customer 99110 174900 Sale of Securities 13992 Total receipts 113102 174900 Cash balance available 165572 206965 Less: Disbursement Payment for material 58300 87450 Payment of labour 34980 52470 Manufacturing OH 22737 27401 Selling and admin Oh 17490 23320 Total disbursement 133507 190641 Net cashh balance 32065 16324 Financing Add: Borrowings 0 6996 Less: Repayments 0 0 Ending cash balance 32065 23320

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