Deitz Corporation is projecting a cash balance of $36,990 in its December 31, 20

Question

Deitz Corporation is projecting a cash balance of $36,990 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 $228,105. The schedule of expected payments for direct materials for the first quarter of 2017 shows total payments of $53,019. Other information gathered for the first quarter of 2017 is sale of equipment $3,699; direct labor $86,310, manufacturing overhead $43,155, selling and administrative expenses $55,485; and purchase of securities $17,262. Deitz wants to maintain a balance of at least $30,825 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

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Beginning Cash balance                     36,990.00 Add Cash receipts Expected cash collection                  228,105.00 Sale of equipment                       3,699.00 Total cash receipts                  231,804.00 Available cash                  268,794.00 Less Cash Payments Direct Material payment                     53,019.00 Direct Labour payment                     86,310.00 Manufacturing overhead                     43,155.00 Selling and admin expenses                     55,485.00 Purchase of securities                     17,262.00 Total Cash Payments                  255,231.00 Ending Cash balance before adj                     13,563.00 Minimum desired balance                     30,825.00 Borrowings                     17,262.00 Ending cash balance after adj                     30,825.00

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