Deitz Corporation is projecting a cash balance of?37,890 in its December 31, 201
ID: 2436537 • Letter: D
Question
Deitz Corporation is projecting a cash balance of?37,890 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 $233,655. The schedule of expected payments for direct materials for the first quarter of 2017 shows total payments of $54,309. Other information gathered for the first quarter of 2017 is sale of equipment $3,789; direct labor $88,410, manufacturing overhead $44,205, selling and administrative expenses $56,835; and purchase of securities $17,682. Deitz wants to maintain a balance of at least $31,575 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 For the Quarter Ended Beginning Cash Balance 37890 Collections from CustomExplanation / Answer
Answers
Beginning Cash balance
$ 37,890.00
Add:
Receipts
Collection from Customers
$ 233,655.00
Sale of Equipment
$ 3,789.00
Total receipts
$ 237,444.00
Total Available Cash
$ 275,334.00
Less:
Disbursements
Direct materials
$ 54,309.00
Direct Labor
$ 88,410.00
Manufacturing Overhead
$ 44,205.00
Selling & Administrative expenses
$ 56,835.00
Purchase of Securities
$ 17,682.00
Total Disbursements
$ 261,441.00
Excess of Available Cash Over Cash Disbursements
$ 13,893.00
Financing
Add:
Borrowings
$ 17,682.00
Less:
Repayments
$ -
Ending Cash Balance
$ 31,575.00
Beginning Cash balance
$ 37,890.00
Add:
Receipts
Collection from Customers
$ 233,655.00
Sale of Equipment
$ 3,789.00
Total receipts
$ 237,444.00
Total Available Cash
$ 275,334.00
Less:
Disbursements
Direct materials
$ 54,309.00
Direct Labor
$ 88,410.00
Manufacturing Overhead
$ 44,205.00
Selling & Administrative expenses
$ 56,835.00
Purchase of Securities
$ 17,682.00
Total Disbursements
$ 261,441.00
Excess of Available Cash Over Cash Disbursements
$ 13,893.00
Financing
Add:
Borrowings
$ 17,682.00
Less:
Repayments
$ -
Ending Cash Balance
$ 31,575.00
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