CALCULATOR PRINTER VERSION BACK Challenge Exercise 24-01 a, b1-b3 Martin Company expects to have a cash balance of $136,400 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows: Collections from customers: January $248,200, February $434,200. Payments for direct materials: January $156,900, February $239,900 Direct labor: January $91,300, February $135,900. Wages are paid in the month they are incurred. Manufacturing overhead: January $63,000, February $75,800. These costs include depreciation of $5,100 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $44,200, February $59,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $36,500 in cash. Martin Company has a line of credit at the local bank that enables it to borrow up to $75,200. The company wants to maintain a minimum monthly cash balance of $59,000. Prepare a cash budget for January and February Martin Company Cash Budget For the Months Ending February 2020 January February 136400 71800 Beginning Cash Balance Add . Receipts 248200 434200 Collections from Customers 36500 Sale Securities 285700 4342200 Prepare a cash budget for January and February. Martin Company For the Months Ending February 2020 For the Mo... Cash Budopany January February Beginning Cash Balance 136400 71800 Add . Receipts Collections from Customers 248200 434200 Sale of Securities 36500 Total Receipts 285700 4342200 Total Available Cash 422100 506000 Less . Disbursements -156900 -239900 Direct Materials -91300 -135900 Direct Labor -57900 -70700 Manufacturing Overhead -44200 -59000 Selling and Administrative Expenses -350300 -505500 Total Disbursements CALCULATOR PRINTER VERSION 4 BACK NEXT Total Disbursements -350300 595 Excess (Deficiency) of Available Cash over Cash Disbursements 71800 500 Financing Add Borrowings Less Repayments including Interest 71800 Ending Cash Balance LINK TO TEXT 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: $375,400 Payments for direct materials: $206,200 Direct labor: Wages paid in March $117.300 Manufacturing overhead: $63,300. This includes the monthly depreciation of $5,100. Selling and administrative expenses: $50,800. This cost is exclusive of depreciation. Marketable securities of $48,400 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 Beginning Cash Balance Add . Receipts Collections from Customers Sale of Securities Total Receipts Total Available Cash Less . Disbursements Direct Materials Direct Labor Manufacturing Overhead Selling and Administrative Expenses Total Disbursements Excess (Deficiency) of Available Cash over Cash Disbursements Total Disbursements Excess (Deficiency) of Available Cash over Cash Disbursements Financing Add . Borrowings Less Repayments including Interest Ending Cash Balance LINK TO TEXT What is the maximum amount the company can borrow during March? Maximum amount the company can borrow $ Does this provide the company with an adequate ending cash balance? Borrowing this amount Martin Company with their minimum ending cash balance LINK TO TEXT What is the maximum amount the company can borrow during March? Maximum amount the company can borrow $0 Does this provide the company with an adequate ending cash balance? Borrowing this amount Martin Company with their minimum ending cash balance. LINK TO TEXT How much does the company need to borrow if the marketable securities are sold? Company needs to borrow $ Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT Que