0.5/2 Question 3 View Policies Show Attempt History Current Attempt in Progress Martin Company expects to have a cash balance of $134,400 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows: . Collections from customers: January $250,200, February $433,800. Payments for direct materials: January $159,500, February $238,100 Direct labor: January $88,200, February $136,200. Wages are paid in the month they are incurred. Manufacturing overhead: January $62,600, February $73,900. These costs include depreciation of $5,000 per month. All other overhead costs are paid as incurred Selling and administrative expenses: January $45,100, February $60,800. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are ekpected to realize $35,400 in cash. Martin Company has a line of credit at the local bank that enables it to borrow up to $74,400. The company wants to maintain a minimum monthly cash balance of $61,200. (a) Your answer is correct. Prepare a cash budget for January and February Martin Company Cash Budget For the Months Ending February 2020 January $ 134400 February Beginning Cash Balance $ 69600 Add: Receipts Course Chat Martin Company Cash Budget For the Months Ending February 2020 January February Beginning Cash Balance 134,400 $ 69600 Add : Receipts Collections from Customers 250200 433800 Sale of Securities 35400 Total Receipts . 285600 433800 Total Available Cash 420000 503400 Less : Disbursements Direct Materials 159500 238100 Direct Labor 88200 i 136200 Manufacturing Overhead 57600 68900 i Selling and Administrative Expenses 45100 60800 Total Disbursements 350400 504000 Excess (Deficiency) of Available Cash over Cash Disbursements : 69600 (600) Financing Add : Borrowings 61000 Less : Repayments including interest Ending Cash Balance $ 69600 $ 61200 Course Chat Flajer too (61) Martin Company's chief financial officer feels that it is important to have data for the entire quarter especially since their financial forecasts indicate some difficult economic periods in the coming year. March information has been budgeted as follows: Collections from customers: $382,100 Payments for direct materials: $213,600 Direct labor: Wages paid in March $117,100 Manufacturing overhead: $64,400. This includes the monthly depreciation of $5,000. Selling and administrative expenses: $51,500. This cost is exclusive of depreciation. Marketable securities of $53,700 can be sold if needed for additional cash. . . Prepare a cash budget for March assuming that the company does not sell the marketable securities, Martin Company Cash Budget For the Month Ending March 2020 $ Course Chat Martin Company Cash Budget For the Month Ending March 2020 > : $