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Exercise 21-14 Danner Company expects to have a cash balance of $59,294 on January 1, 2014. Relevant monthly budget data for the first 2 months
Exercise 21-14 Danner Company expects to have a cash balance of $59,294 on January 1, 2014. Relevant monthly budget data for the first 2 months of 2014 are as follows. Collections from customers: January $109,565, February $193,350 Payments for direct materials: January $64,450, February $90,230. Direct labor: January $38,670, February $58,005. Wages are paid in the month they are incurred. Manufacturing overhead: January $27,069, February $32,225. These costs include depreciation of $1,289 per month. All other overhead costs are paid as incurred Selling and administrative expenses: January $19,335, February $25,780. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $12,890 in cash. Danner Company has a line of credit at a local bank that enables it to borrow up to $32,225. The company wants to maintain a minimum monthly cash balance of $25,780 Prepare a cash budget for January and February
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