Will rate thumbs up if answer is clear and organized.Thank you! Deitz Corporatio

Question

Will rate thumbs up if answer is clear and organized.Thank you!

Deitz Corporation is projecting a cash balance of $33,150 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 $204,425. The schedule of expected payments for direct materials for the first quarter of 2017 shows total payments of $47,515. Other information gathered for the first quarter of 2017 is sale of equipment $3,315; direct labor $77,350, manufacturing overhead $38,675, selling and administrative expenses $49,725; and purchase of securities $15,470. Deitz wants to maintain a balance of at least $27,625 cash at the end of each quarter.

Prepare a cash budget for the first quarter.

DEITZ CORPORATION Cash Budget

Explanation / Answer

Answer:-

Deitz Company Cash Budget Particulars 1st Quarter $ Opening cash balance 33150 Collections from customers 204425 Sale of equipment 3315 Total cash availble 240890 Less:- Cash payments Direct material 47515 Direct labor 77350 Manufacturing overhead 38675 Selling & administrative expenses 49725 Purchase of securities 15470 228735 Closing cash balance 240890-228735=12155 Minimum cash balance required 27625 Borrowing required 27625-12155=15470

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