Question Deitz Corporation is projecting a cash balance of $41,580 in its Decemb

Question

Question Deitz Corporation is projecting a cash balance of $41,580 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 $256,410. The schedule of expected payments for direct materials for the first quarter of 2017 shows total payments of $59,598. Other information gathered for the first quarter of 2017 is sale of equipment $4,158; direct labor $97,020, manufacturing overhead $48,510, selling and administrative expenses $62,370; and purchase of securities 19,404. Deitz wants to maintain a balance of at least $34,650 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.)

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Amount Opening cash balance              41,580.00 Expected collection from customers            256,410.00 Sale of Equipment                4,158.00 Total collections            260,568.00 Payment for direct materials              59,598.00 Direct labour              97,020.00 Manufacturing Overhead              48,510.00 Selling and admin expenses              62,370.00 Purchase of securities              19,404.00 Total disbursements            286,902.00 Expected ending balance = Opening cash + Collection - Disbursements              15,246.00 Desired ending balance              34,650.00 Borrowings = 34650 - 15246              19,404.00

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