Question
Deitz Corporation is projecting a cash balance of $36,960 in its December 31, 2016, balance sheet. Deitzs schedule of expected collections from customers for the
Deitz Corporation is projecting a cash balance of $36,960 in its December 31, 2016, balance sheet. Deitzs schedule of expected collections from customers for the first quarter of 2017 shows total collections of $227,920. The schedule of expected payments for direct materials for the first quarter of 2017 shows total payments of $52,976. Other information gathered for the first quarter of 2017 is sale of equipment $3,696; direct labor $86,240, manufacturing overhead $43,120, selling and administrative expenses $55,440; and purchase of securities $17,248. Deitz wants to maintain a balance of at least $30,800 cash at the end of each quarter.
Prepare a cash budget for the first quarter. (Do not leave any answer field blank. Enter 0 for amounts.)
DEITZ CORPORATION Cash BudgetStep by Step Solution
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