e v ant monthly age of the months Collections from customers January 104.299, February $187.500 Payments for rect materials: Macary 162,500. February 593,750. Direct labor a ry $37,500, February $56,250. Wages are paid in the month they are incurred. Manufacturing overhead Manuary 20,250, February $31,250. These costs include depreciation of $1,875 per month. Al other overhead costs are paid as incurred Selling and administrative expenses: January 18,750, February $25,000. These costs are exclusive of depreciation. They are paid as incurred Sales of marketable securities in January are expected to realize $15,000 in cash. Danner Company has a ine of credit at a local bank that enables it to borrow up to $1,250. The company wants to maintain a minimum monthly cash balance of $25,000 Prepare a cash budget for January and February DANNER COMPANY Cash Budget Your answer is correct. Prepare the merchandise purchases budget for each month in columnar form. SUPPAR COMPANY San Miguel Store Merchandise Purchases Budget For the Months of May and June, 2020 May June Budgeted Cost of Goods Sold 900,000 945,000 Desired Ending Merchandise Inventory 94,500 99,225 Total 994,500 1,044,225 Less Beginning Merchandise Inventory 90,000 94,500 904,500 949,725 Required Merchandise Purchases Danner Company expects to have a cash balance of $56,250 on January 1, 2020. Relevant monthly budget data for the first 2 months of 2020 are as follows. Collections from customers: January $106,250, February $187,500. Payments for direct materials: January $62,500, February $93,750 Direct labor: January $37.500, February $56,250, Wages are paid in the month they are incurred. Manufacturing overhead: January 26,250, February $31,250. These costs include depreciation of $1,075 per month. All other overhead costs are paid as incurred. Sening and administrative expenses: January $18,750, February $25,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $15,000 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $31,250. The company wants to maintain a minimum monthly cash balance of $25,000. Prepare a cash budget for January and February DANNER COMPANY