7.10

Swifty Company expects to have a cash balance of $36,900 on January 1,2025 . Relevant monthly budget data for the first 2 months of 2025 are as follows. Collections from customers: January $69,700, February $123,000. Payments for direct materials: January $41,000, February $61,500. Direct labor: January $24,600, February $36,900. Wages are paid in the month they are incut Manufacturing overhead: January $17,220, February $20,500. These costs include depreciat Selling and administrative expenses: January $12,300, February $16,400. These costs are ex Sales of marketable securities in January are expected to realize $9,840 in cash. Swifty Company has a line of credit at a local bank that enables it to borrow up to $20,500. The company wants to maintain a minimum monthly cash balance of $16,400. Prepare a cash budget for January and February. SWIFTY COMPANY Cash Budget January February Disbursements Beginning Cash Balance Total Available Cash Excess (Deficiency) of Available Cash Over Cash Disbursements Financing Borrowings Total Receipts Manufacturing Overhead Collections from Customers Direct Materials Ending Cash Balance Sale of Marketable Securities Total Disbursements Repayments Direct Labor Receipts Swifty Company expects to have a cash balance of $36,900 on January 1,2025 . Relevant monthly budget data for the first 2 months of 2025 are as follows. Collections from customers: January $69,700, February $123,000. Payments for direct materials: January $41,000, February $61,500. Direct labor: January $24,600, February $36,900. Wages are paid in the month they are incut Manufacturing overhead: January $17,220, February $20,500. These costs include depreciat Selling and administrative expenses: January $12,300, February $16,400. These costs are ex Sales of marketable securities in January are expected to realize $9,840 in cash. Swifty Company has a line of credit at a local bank that enables it to borrow up to $20,500. The company wants to maintain a minimum monthly cash balance of $16,400. Prepare a cash budget for January and February. SWIFTY COMPANY Cash Budget January February Disbursements Beginning Cash Balance Total Available Cash Excess (Deficiency) of Available Cash Over Cash Disbursements Financing Borrowings Total Receipts Manufacturing Overhead Collections from Customers Direct Materials Ending Cash Balance Sale of Marketable Securities Total Disbursements Repayments Direct Labor Receipts