Danner Company expects to have a cash balance of $54 450 on January 1, 2020 Relevant monthly budget data for the first 2 months of 2020 are as follows Collections from customers January $102 850 February $181 500 Payments for direct materials January $60 500 February $90,750 Direct labor January $36,300 February $54 450 Wages are paid in the month they are incurred Manufacturing overhead January $25 410 February $30 250 These costs include depreciation of $1,815 per month All other overhead costs are paid as incurred Selling and administrative expenses January $18 150 February $24 200 These costs are exclusive of depreciation They are paid as incurred Sales of marketable securities in January are expected to realize $14 520 in cash Danner Company has a line of credit at a local bank that enables it to borrow up to $30 250 The company wants to maintain a minimum monthly cash balance of $24 200 Prepare a cash budget for January and February DANNER COMPANY Cash Budget January Fe $ $ $ S

Question

Danner Company expects to have a cash balance of $54 450 on January 1, 2020  Relevant monthly budget data for the first 2 months of 2020 are as follows  Collections from customers  January $102 850  February $181 500  Payments for direct materials  January $60 500  February $90,750  Direct labor  January $36,300  February $54 450  Wages are paid in the month they are incurred  Manufacturing overhead  January $25 410  February $30 250  These costs include depreciation of $1,815 per month  All other overhead costs are paid as incurred  Selling and administrative expenses  January $18 150  February $24 200  These costs are exclusive of depreciation  They are paid as incurred  Sales of marketable securities in January are expected to realize $14 520 in cash  Danner Company has a line of credit at a local bank that enables it to borrow up to $30 250  The company wants to maintain a minimum monthly cash balance of $24 200  Prepare a cash budget for January and February  DANNER COMPANY Cash Budget January Fe $ $ $ S

Accepted Answer

The Answer is in the image, click to view ...

Question

Danner Company expects to have a cash balance of $54.450 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020

Step by Step Solution

Step: 1

Get Instant Access to Expert-Tailored Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Recommended Textbook for

Managing The Audit Function A Corporate Audit Department Procedures Guide

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question