accounting assignment #13

Blossom Company expects to have a cash balance of $45,450 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows. Collections from customers: January $85,850, February $151.500. Payments for direct materials: January 550,500, February $75,750. Direct labor: January $30,300, February $45,450 Wages are paid in the month they are incurred, Manufacturing overhead: January $21.210. February $25,250. These costs include depreciation of $1.515 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $15,150, February $20,200. These costs are exclusive of depreciation. They are paid as incurred Sales of marketable securities in January are expected to realize $12, 120 in cash. Blossom Company has a line of credit at a local bank that enables it to borrow up to $25,250. The company wants to maintain a minimum monthly cash balance of $20,200. Prepare a cash budget for January and February Prepare a cash budget for January and February BLOSSOM COMPANY Cash Budget January Fet . e $