Deitz Corporation is projecting a cash balance of $37,620 in its December 31, 20

Question

Deitz Corporation is projecting a cash balance of $37,620 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 $231,990. The schedule of expected payments for direct materials for the first quarter of 2017 shows total payments of $53,922. Other information gathered for the first quarter of 2017 is sale of equipment $3,762; direct labor $87,780, manufacturing overhead $43,890, selling and administrative expenses $56,430; and purchase of securities $17,556. Deitz wants to maintain a balance of at least $31,350 cash at the end of each quarter. Prepare a cash budget for the first quarter. (Do not leave any answer field blank. Enter O for amounts.) DEITZ CORPORATION Cash Budget

Explanation / Answer

DEITZ CORPORATION

Cash Budget

Quarter 1, 2017

* Financing = Desired ending balance of cash - cash surplus

Financing = 31350 - 13794 = $17556

Amount ($) Begining Budgeted Cash Balance (A) 37620 (+) Budgeted Cash Receipts Collection from customers 231990 Sale of equipment 3762 Total Budgeted Cash Receipts (B) 235752 Total Budgeted Cash Available (C = A+B) 273372 (-)Budgeted Cash Disbursement Direct Material 53922 Direct Labour 87780 Manufacturing Overhead 43890 Selling & Administrative Exps. 56430 Purchase of Securities 17556 Total Cash Disbursement (D) 259578 Cash Surplus / (Deficit) (E= C-D) 13794 Financing 17556 Net Cash from financing (F) 17556 Budgeted ending cash balance (G = E+F) 31350

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.